The Financial Crisis

I am in no way an economist. I studied History and Religion in college. I avoided business classes. I am, however, learning to become a good steward of the resources God has given. I believe in order to do this best, I need to understand my human nature and learn to make wise decisions, not emotional decisions. This, incidentally, is one of the keys to Warren Buffett's financial decision making process (and I think he's doing just fine).
In thinking about the current financial crisis I have come up with two words that summarize the whole mess: Fear and Greed.
Our nation's current emotional gauge is pegged on "Scared Spitless." We watch the news daily cry out that the sky is falling. The talking heads tell us that soon we'll all be living in caves and foraging for nuts and berries just to survive. The vision in my head resembles Mad Max, Beyond Thunderdome. This stokes our fear. The important thing to remember is that the media is a business. Their job is to titillate or stoke fear. If the media tells you that everything is fine, nobody worry, it's going to be okay...you'll stop watching. If they can, however, stoke your fear, then you will watch more. If you watch more, they can sell more advertising. If they can sell more advertising, then THEIR financial crisis is averted. Ironically, that advertising also plays into the other key word of this Financial Crisis, Greed.
Yes, corporate America is greedy. Banks and financial institutions really screwed up. Their greed is putting the financial solvency of our country at risk. Many people will loose fortunes and jobs. But the real problem is much closer to home than Wall Street. Their greed was only possible because of our greed. Main Street is far more responsible for this than Wall Street.
As you're watching the coming of the Apocolypse on TV, you see an ad for that new thing. You know that thing, the one that is new and better than the old thing. It has been completely redesigned and improved. This thing will do what no other thing has ever done...and it's cooler than the other things. The people at your office will be envious of your new thing. The ladies at your Bible study will want one, too. You'll be a happier person with this new thing. Life will be better with this thing. Skies will be bluer. Grass will be greener. Your wife will be prettier. Your hair will be fuller. You can run faster and jump higher. You'll look 10 years younger. You will be a better person. You MUST have this thing.
The truth is, this thing is crap. You don't need it. You don't even really want it, but some genius twenty eight year old ad wizard has learned how to manipulate your basest instincts so that you think this new thing is salvation in a bottle. So you buy the new thing. It could be dinner out, a new flat screen tv, an iPhone, a hybrid SUV, that bigger house or the perfect vacation. You don't have to money to buy it, so you charge it, mortgage it or refinance it. Then Wall Street has offered to fulfill desires with a Faustian pledge. You can have whatever you want, TODAY! We all want to think we're smarter than this, but the truth is, we've all succumbed to it. We're all part of the problem because we all look for someTHING to fill the need in our life that only someONE could fill.
So what do we do? How do we respond sensibly and wisely to this situation? I propose that there are four responses that the average Christian can make.
First, we need to pray for our leaders and for whoever is going to be our leaders in the coming years. They will need to make difficult decisions about this situation. God is not worried, surprised, or afraid of this situation. He is the one who ones a thousand cattle on the hills (Ps 50:10). A thousand cattle may not sound impressive, but contextually it meant God owns everything.
Secondly, get your own house in order. Eliminate debt. Use a budget. Spend responsibly. Get rid of the stuff that is choking your life.
Thirdly, care for your neighbors. How is the family next door dealing with this issue? How can you offer them hope that extends beyond the current crisis? What can you do to help them today? Pray for them and let them know you are doing so. Be involved in their lives.
Fourthly, work for a solution to the current situation. Your vote will speak powerfully. There are lots of people in Congress nervous about November. They don't want to lose their job over this issue. There is a presidential battle that will be decided by a slim margin. Let it be known that you will vote for the candidate seeks to wisely solve this problem. What works for your house will work for the government. Avoid debt. Spend wisely. Get rid of things that choke the life out of our econonmy.
Again, I re-emphasize that I am not an economist, but in looking over alternatives to the $700 Billion bailout plan, I came across one proposed by Dave Ramsey. It makes sense at a basic level (another key to Warren Buffett's investment strategy). You can read it here.