The Anatomy of a Bailout

JP: A Christian businessman (see note below) explains “the bailout” and the opportunities the credit crisis has opened for him.

The Anatomy of a Bailout

Introduction:

Twenty years from now, finance students will be studying the Credit Debacle of 2008 trying to understand what happened, why it happened, and what could have been done to avoid it. Much like the Great Depression, we are seeing a series of events that will drastically change the landscape of the American Economy.

As we are faced with this monumental economic event, we are encouraged to believe that this is somehow new and different and therefore more menacing than anything we’ve ever faced. If we read Ecclesiastes we know that there is “nothing new under the sun.” We also know that God is in control and working all things to his purpose. This is a great relief and encouragement to me. I don’t have to worry about the “imminent collapse” of our country. I can rely on a sovereign God!

That being said, we are members of this economy and called to be stewards of what the Lord has given us. How do we interpret these current events and what should we do about them? As I write this article, I run the risk of being labeled as naïve and simplistic. That may be true, but sometimes the most complex problems are best understood in a simplistic light. Some simple observations will give us a framework for processing the “news” we are bombarded with.

Conclusion:

What you and I can do is to learn from this mistake. We need to return to living within our means, to follow biblical principles for borrowing and lending, to being content with the financial situations God has put us in. Not all debt is bad debt; the Bible is clear about that. But using debt to live beyond our means shows dissatisfaction with God’s provision for us. We are called to be wise as serpents and carefully analyze what’s going on in the broader economy. How does this affect the culture? What ministry opportunity does this present? Are there some around us who are needy? How can we adjust our lives to be better stewards of that which God has entrusted us?

This is an exciting time for me personally. I get to reflect to my clients a peace that they don’t understand. A peace that comes from knowing, and believing, that God is truly in control of all of today’s market events.

Read full article here: The Anatomy of a Bailout

By: Chris Bixby, CFP®, EA

Chris is the cofounder and owner of Bixby & Associates Financial Solutions. He is the firm’s principal financial consultant helping clients define their unique financial goals. In 1998 he graduated from Bob Jones University with a degree in Financial Management. After working as a trainee and then an associate for a local Vermont firm, Chris cofounded Bixby & Associates. He holds the NASD Series 7 and 66 securities licenses as well as his insurance licenses.

Comment: Image courtesy of the Arnold H. Hoffer Library.

HT: bigpicture.typepad.com

For more work by Jim Flora, go to JimFlora.com

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