My father, who lived through the depression of the 30's (And held his savings in common stock the whole time), used to assure me that that such a depression could never be repeated. It was after that depression that the FDIC was created (also the FSLIC etc). Also then, The Securities and Exchange folks tried putting limits on stock "margin" accounts (buying stock with borrowed money which is what caused the legendary suicides when the market crashed in those days.)
My Dad was a smart businessman in his day. But I wonder what he'd say about our situation today. I think he underestimated the power of greed and subterfuge to ruin the most foresighted of plans.
---Donna66 on 9/19/08|
Ralph ... Thre have been previous occasions where there has been too free credit allowed to those who could not pay back (some of our banks were nearly ruined by stupid loans to South Ameriacan countries0
But I was also speaking from personal experience during my career in insurance ... cycles of having to clean the account because it was grossly unprofitable because of rash acceptance of busines in the previous years. The next generation never learnt, and repeated the same errors.
And so it will continue ... people wanting to amke a name and meet immediate targets without any thought of the long term effects
---alan_of_UK on 9/19/08|
Alan, the US Congress created this whole mess to begin with. Fannie Mae and Freddie Mac are corporations established by the Congress for the purpose of making home mortgages widely available. Well, it worked. Vast numbers of people who couldn't afford mortgages were given mortgages.
Liberal ideology states that Government always knows best. When Congress becomes involved in the marketplace it is because the public is ostensibly too stupid to do it right. This week we witness the results of Government involvement in the real estate market.
By the way, Freddie and Fannie became big contributors to members of congress. The recipient of the second largest contributions from these "corporations"-Barack Obama.
---ralph7477 on 9/19/08|
Ralph "They won't make the same mistakes again"
Ralph ... they will. This generation may learn, but they won't be there next time!
So the new kids in the block will do just the same.
---alan_of_UK on 9/16/08|
No, Congress does not need to find a way to prevent a repeat. These events will not be repeated. The reality of current events is the best lesson for lenders and borrowers. They won't make the same mistakes again. Free markets demonstrating the consequences of foolishness and the benefits of wisdom.
---ralph7477 on 9/16/08|
I have listened to the experts for the cause of financial problems facing America and the rest of the western-linked world.
I would begin to question why these things are happening ina more fundamental way. Is the system that allows profit at ANY cost responsible?
---Janze on 9/16/08|
Frances ... You are right.
It was all caused by the banks making credit too easy and cheap, evne for those who would never be able to pay back in the best of circumstances.
You may think it was part of a conspiracy to create the present crisis ... I just think they were criminally stupid
---alan_of_UK on 9/16/08|
The collapse of a housing "bubble" was expected by many. Despite this foresight, nobody stepped in to stop the irresponsible lending policies of the big lending institutions.
Americans have become so accustomed to high personal debt....that when a lender tells them they can have their "dream" house without the need for income, job or assets...no common sense kicks in. They sign on the bottom line.
Then they reap the consequences. Now the taxpayer is being expected to bale out the financial institutions and probably home-buyers facing forclosure on top of it.
We will have a rough patch, a bear market, a recession. But NOT a financial collapse. However, Congress MUST find the way to prevent a repeat.
---Donna66 on 9/15/08|
In the UK, the newspapers were talking about the need for people to stop spending like there is no tomorrow. We need to stop drawing out credit. Stop buying clothes that we do not need. Start repairing damaged clothes, shoes etc. We need to change our lifestyles and live more simply, and eat less. This would be good for all the world economy. Debt is not good for nations.
---frances008 on 9/15/08|
The former chairman of the Federal Reserve, Alan Greenspan, recently noted that the USA just can't afford John McCain's tax cuts.
No matter who wins the U.S. Presidential election, there will definitely be a "fiscal crisis" for the winner to deal with. Immediately too.
I don't think that the USA is headed towards a financial collapse because the rest of the world would collapse alone with the USA.
Instead, the nation needs to make some "very serious financial management changes" NOW. We can must pray that GOD appoints the right people to lead the USA. And those appointed leaders MUST make the necessary changes to the nation's financial policies.
---Augie on 9/14/08|
yes, this country has a federal deficit of $9 trillion dollars & the current administration continues to borrow money from china. that devaluates the dollar, creates infation, slows down the economy & the vicious cycle continues
---mike on 7/28/08|
Regardless of the economy, God says he will provide for HIS people. I received a letter recently from the state that I could have extended unemployment even though mine ran out a few months ago. I have been unable to find another job although I have many years of experience in my field. Companies do not want to hire anyone over 50 it seems. Again, the Lord came through with this added financial blessing as I have remained faithful in tithes and offerings.
---KarenD on 7/28/08|
John McCain's 100-year Iraq war plan sounds entirely possible, until you ask: How are we going to pay for it? What about the war in Afghanistan?
The current wars in Afghanistan and Iraq have both laster longer than expected and gotten the USA into a uncontrolled debt spending trap. I'm not sure if either war has accomplished much of anything. All I know is that the USA owes China a lot of $$$ for these questionable wars.
Saddam Hussein is gone and Iraq is much worse. Osama Bin Laden is probably still alive and Afghanistan is worse too. The world isn't any safer than before 9/11/2001.
---sag on 7/27/08|
America is headed towards a "financial collapse" because of the costs of providing Social Security and military operations.
When you add in the amount of money that will be needed to pay these promised benefits, the total Federal debt increases to at least $50 TRILLION. The IOUs for future Social Security benefits are nothing but "ink on paper". The actual dollar amount will come from either additional borrowing or cutting the Federal budget in some other area. But not the military budget.
The costs of providing Social Security, and military operations, will drive the country further into it's financial debt trap.
The USA cannot afford the Social Security, and military, systems as currently setup.
---sag on 7/27/08|
America is a country founded on the principle of freedom of religion - as the freedom to chose, individually, ones own method of worship. America as a whole has chosen Christianity. The methods within Christianity may vary, unfortunately resulting in the divisions of denominationalism, however the unifying constant is that Jesus is recognized and acknowledged as LORD of our salvation. We are a people who are called by His name. If we both collectively and individually humble ourselves and pray, recognizing and acknowledging our own finiteness and shortcoming. Turn from our wicked ways and seek His presence, He will hear and heal our land. "Prayer is the key in the hands of faith that unlocks the boundless resources of His omnipotence."
---Josef on 7/26/08|
Thanks for explaining that "immorality" involves much more than just sexual types.
The United States of America is living beyond it's means in almost every way, shape, and form. Fiscal Immorality if you ask me. I find it hard to believe that the "richest" nation on this planet seems to have the "poorest" money management in the world. The only explanation for that is our Fiscal Immorality and the consequences for that.
The only reason China keeps on lending us money, and getting the USA further into it's debt trap, is that the USA is too important a market for China to lose. Still, the inevitable financial collapse will eventually happen. We'll all see when just that time is.
---Augie on 7/26/08|
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I hope that all of the bloggers have answered your question. I don't think that anyone intends to sound like a "pessimist". We're just concerned about America's fiscal future. The nation seems to be on it's way to a financial collapse, but there can be a change of course! How?
PRAY! PRAY!! PRAY!!!
---Augie on 7/26/08|
Three things needs to happen in the end time:
1. We need a one world religion, Look around and see how most all religions are comming together. Even Obama said the US was not a Christian nation but many religions with there own way to heaven.
2. We need a one world goverment. There are plans in place to have that in place by 2012.
3. We need a one world money. Our dollar is failing, the EURO dollar is getting stronger.
---Pastor_Herb on 7/25/08|
yes! with 9 trillion dollar deficit & continued borrowing from china & 'free enterprise' is a euphemism for greed, there will be financial collapse. immorality is also about greed, love of money, power & corruption not sexual immorality & abortion.
---mike on 7/25/08|
America is indeed headed for a financial collapse. America has kicked GOD out of her midst and has replaced Him with the god of MONEY. GOD will bring Judgment to America for all of her damning sins. Those sins have not only defiled HER, but have been exported to other countries, to defile THEM further, as well. America has taken GOD's Blessings of Freedom and Prosperity and has used them for her own selfish lusts of greed, materialism and sexual immorality. And America is ENCOURAGING the division of Israel amongst her enemies, which is CURSING Israel. We should be BLESSING her instead! GOD will severely Judge America. He will then say to America, "America, you trusted in MONEY as your god, let HIM save you from my Judgments, now."
---Gordon on 7/23/08|
Mima, I wish you well with your financial planning. It is never a bad idea to prepare for the worst and hope for the best. I don't share your opinion about the economy however I applaud your efforts and action.
---TIMOTHY on 7/23/08|
I cannot agree with---TIMOTHY'S assessment here. Sources that I found to be reliable in the past say great financial collapse coming.
About six months ago I began to take this possibility of a financial collapse inTO consideration.
---Mima on 7/23/08|
No there is no collapse coming for financial reasons. There have always been good times and bad times in this country however the general infrastructure is sound. Of course if there is divine intervention and God wishes to take down America, then all bets are off.
---TIMOTHY on 7/22/08|
Oh my . . . she doesn't say it is wrong to have money or that we must give up riches, but that it is wrong to "love money more than God."
And *poor* people can love money more than God, even if they haven't got a cent (o:
And ones are hurt, NOW, while they love their money *more* than God. Ones can get along better with their money, than they can love other people, and better than they can relate with God. And because of this they are not in God's love, but in deep degradation which makes them able to be hurt and suffer emotional problems, because they are not in the safety of God's love which is so beautifully wonderful and almighty to keep them safe.
---Bill_bila5659 on 7/21/08|
People are going to be hurt in this world, soon! Because you love money more than God.
to tell that lie is antichrist ...givine up "riches" won't protect one
NOTHING to do with money!!
the end of age is Gods Plan and it's happening NOW ...might take another 5, 10, 30, maybe even 50 years but it WILL happen ...once Europe Unites becoming the next super power world is one step closer to one world religion governement ...this is Satan's world not Gods
Christians are to WATCH and PRAY to be accounted WORTHY to ESCAPE all these things that MUST come to pass
Christ will rule earth when He defeats Satan and his government on earth
---Rhonda on 7/21/08|
People are going to be hurt in this world, soon! Because you love money more than God. God has a very dim view of people who worships idols. God has a very dim view of people who worships any other god besides Him. God will destroy you, if you do not turn to Him. I speak the truth. But no one is listening.
---catherine on 7/20/08|
I hope not. It is the LOVE of money that is root of all evil..not money...When we as Americans vote according to our pocketbook and not our hearts and convictions...then there will be a collapse. Vote your convictions and God will take care of you.
---melanie on 7/19/08|
America now has a fifty-percent divorce rate. Children of all these broken homes may not know how to love and be caring for others. And these in whatever numbers will be the ones who take over the government. I'm concerned what they will do with us who become elderly while they are in power.
The real danger to this country, I'd say, will be all these kids grown up who won't have sense of caring for others like the elderly, and won't be capable of being responsible in a caring way concerning finances. This breakdown in character of love is America's number one national security risk. Yet, we see so many not concerned about this, but only about how the money is going. Being clueless like this, makes things even more dangerous.
---Bill_bila5659 on 7/19/08|
Yes, America is headed towards a financial collapse. Need proof? Read Proverbs 22:7 in the Bible:
"The rich rules over the poor, And the borrower becomes the lenders slave"
The United States of America has an AAA credit rating. The "best" on earth. We've over-extended ourselves, and gotten so deep in debt, that I don't think we'll ever get out. At least not in the lifetimes of anyone reading this blog posting. Our AAA credit rating has gotten the entire nation into the trap explained in Proverbs 22:7.
China now owns the U.S. Why is this so?
The "christian" American government owes TRILLIONS of $$$ to the "communist" Chinese government. Unbelievable!
---Sag on 7/19/08|
Another sign of the U.S. economy being in dire financial straits:
Anheuser-Busch was recently gobbled up by InBev, a Belgian company. I never used any of Anheuser-Busch's products because I'm not a beer drinker. Still, the fact that a large U.S. company was just acquired shows how much the economy has slide downhill. The U.S. dollar is not trading very well overseas these days.
The same scenario applies to U.S. companies in almost every other business sector. I'm not saying that foregin ownership of U.S. companies is bad. It's just that this is happening at a much greater rate than ever before. And, you don't hear too much of U.S. companies buying up foreign companies these days.
---Augie on 7/18/08|
Yes, the financial collapse of America is inevietable, Actually God has given us time to repent. Sins have consequences and we are in for a spanking--one that will really hurt. But, I won't preach.
---Danelle_8439 on 7/18/08|
I am not one of the prophets that are gifted to look into the future with dreams and visions from God. And I know this. However, I do receive warnings from God, and yes they come true. But, the answer to your question is I believe it is possible. [Most everyone probably believes that]. I am not trying to be evasive. This is what God has given me at this monent. Note: I have received dreams and visions [open] But nothing concerning our country. But, this could change.
---catherine on 7/18/08|
I thought, and folks correct me if I'm wrong, that Gold has to back up our paper money. If we don't have the gold to back up our money, we can't just go and print money...
Gold DOES NOT back the money of the US ....it hasn't since the Federal Reserve (a PRIVATELY OWNED COMPANY) was created by Rockefeller and his coherts
WAKEUP ...what's happeneing to the US now is the result of a soon to be ONE World Government ...countires all over the world are coming in buying up US companies ...the US is only a "super power" now because no other country has stepped up to claim it ...US met it's demise years ago ...it will be a slow death until we bottom out financially
---Rhonda on 7/18/08|
Yes. The entire free world economy depends on an abundant source of cheap energy. That source is oil, and the supply is only going to last another 35-50 years according to most experts. Long before that, there will be shortages and severe economic crisis that will result. Don't expect sources like ethanol of biodiesel to make up the difference. If 100% of our cropland were dedicated to energy production, it would only supply 10% of the US need alone. We have China and India to worry about too.
---obewan on 7/18/08|
with rising cost of fuels,and food. and the collapse of the housing market,and the apparent significant reduction in auto sales, which I believe has reached nearly 30 percent or more lower.that coupled with several other major areas ,like tourist industry related business,s,it might be safe too say it just may happen.
---tom2 on 7/18/08|
If a Christian's home suffers financial collapse, they need to look inward for the cause. Christians have been warned for years to get debt-free, but insist on having everything right now (on credit) and not resisting temptation. What ever happened to paying cash for everything?
---SusieB on 7/17/08|
to ralph - do not blame it to the democrats or FDR. 1st of all, a GOP president is in the white house, who wants to privatize the war, gov't & who thinks that deregulation is the answer to all financial problem. this leads to greed & corruption.
2nd - after WW2, america was the richest nation on earth, thanks to the regulated economy. always blame the democrats or liberals for the problems of this nation
3rd - under bill clinton, there was a surplus unlike now more deficit more corruption. if bush cannot take responsibility, then he is not fit to be president
---mike on 7/17/08|
Donna....Are those the same preachers who talked up Y2K which never happened? Yet, people are still listening to those false prophets.
---SusieB on 7/17/08|
Yes of gigantic proportions. I never dreamed that I would live to see this day, where the American dollar has fallen alongside the other currencies of the world. There was a man named Bishop who wrote a book" The day Christ died" and he wrote another book" The day the dollar dies" one day I read both and the one about the dollar is certainly coming true.
---Mima on 7/17/08|
RebeccaD - interesting question. I thought, and folks correct me if I'm wrong, that Gold has to back up our paper money. If we don't have the gold to back up our money, we can't just go and print money. Wouldn't that be nice if we could? Or pick the money from trees?
Yesterday I pulled up into a space at work and found a ton of pennies beside my car. I didn't pick them up - I wanted someone who needed money to have them. But I thought it was funny, I had to step over a hugh pile of pennies...I left them there. I'd like someone needier than I to have them.
---donna8365 on 7/17/08|
We have seen what happens to individuals when they continually spend more than they earn and borrow more than they can pay back. Record home foreclosures and bankruptcy.
Governments are not any different. We have wanted Government to take care of all of our needs and wants which started with FDR. Like little children, the Liberals whine and complain and demand more treats from Government and like an overindulgent parent, Government complies. The only problem is that the Government had to borrow the money to pay for all the goodies.
So now the party is winding down and we find ourselves indebted to foreign countries which are starting to pick us apart piece by piece.
---ralph7477 on 7/17/08|
As Christians, don't we understand that any of us could drop dead, at any moment?
I understand this goes also for a country. It can look as though the United States can keep on going, doing what it chooses and have control of consequences.
But we know how when we sin, we don't control how things go, we do not conrtol how far we go in our sinning. We get in worse trouble and do worse than we had intended. We can get hurt much more than we expected. Ones get killed.
Like this, any country could go down, at any moment . . . like communism turned out able to fall and all of a sudden Russia was a little bit smaller.
And things can work faster, now, than in the times of the Roman Empire.
---Bill_bila5659 on 7/17/08|
Yes and this was predicted by many anointed men of God MANY years ago. I remember reading David Wilkerson's book (forget the name) and just what he said would happen, is happening. Financial institutions will fail and it has started. Food is going to be so expensive, we will only be able to afford a little.
If you have been listening with Spiritual ears, you would have known to prepare for "such a time as this" by continuing to give/tithe and be obedient to God's word and "Dwell" in the "secret place" of the Most High God," Pray according to Second Chronicles 7:14. That's what all of the anointed men and women of God are saying to do, but is it too late?
---donna8365 on 7/16/08|
---Augie maybe we should pick somebody besides Abraham Lincoln, President Lincoln held seances in the White House and that is hardly the action of a full-blown true Christian.
---Mima on 7/16/08|
Yes,I'm very sure there is one on the horizon.The economy is very poor in this little city where I live and also in the one just 30 mi.East.
---shirley on 7/16/08|
How can United States be in finance trouble when they make their own money? The United States is the only state that makes their own money, but yet they say their broke. Now does that make any sense? No it doesn't. As far as America turning it's back on God, yes it has. A nation that forgets God is in a heep of trouble. America needs to Go Back, to where the church stands strong, go back to the living truth. The United States is going to hell in a hand-basket.
---Rebecca_D on 7/16/08|
The United States of America is a great country. However, the country has drifted away from GOD. Sinful behavior has become normal in this country. GOD has become just the word "dog" spelled backwards. The country is TRILLIONS of dollars in debt. Ouch! All of us Americans, including myself, are responsible to some degree or another. I can only imagine that GOD is very disappointed in the USA.
While most political leaders, including the Presidents, claim to be Christians, I don't think that the USA has had a truely Christian president since Abraham Lincoln. Only GOD knows how much time the USA has left.
There is hope. Will the USA turn back to GOD? I pray and hope so!
---Augie on 7/16/08|