Contact: Hakeem Webb, National Christian Financial Advisors, Inc., 203-757-7907, hjw@ncfallc.com
MEDIA ADVISORY, Oct. 1 /Christian Newswire/ -- Congressional leaders continue deliberations on a $700B financial rescue plan intended to restore confidence in the nation's banking system. The US House has rejected a proposed plan. Meanwhile, the US Senate could pass its version as early as Wednesday.
How should the average American taxpayer contemplate the magnitude of the current crisis and the wisdom of an impending bailout?
The Short Run: In the short run, borrowing could come to a halt. More banks could close their doors. More companies could file bankruptcy. We could experience record layoffs. And, investors may have reduced access to their money.
The Long-Run: While the short run looks ominous, a longer perspective is decidedly brighter. Eventually, the highly-paid executives who created this mess will find themselves jobless. A stronger, leaner financial structure will slowly emerge, with less excess and greed. Corporate America, with its proven resiliency, will rebuild itself, becoming stronger and more productive--with a more competitive global edge.
Alternatives to a Bailout: If the US Government didn't spend $700B bailing out our financial system, how else could it spend the money?
1) Improve our infrastructure. $700B represents half the cost of getting our nation's infrastructure in good working condition, according to our country's civil engineers.
2) Invest in primary education. We could build 35,000 new schools across the country for $700B.
3) Invest in higher education. $700B would put nine million students through a state university.
4) Expand health coverage. For $700B, we could fund ten years' worth of universal health insurance under Senator Obama's plan.
5) Fund the US Department of Education's budget. $700B would fund the agency for more than 10 years.
6) Improve living conditions. The US Government could buy nearly 3.5 million homes outright for US citizens with $700B. To put that in perspective, that's more homes than the number currently in default.
To further put this in perspective, the cost of the bailout approaches the amount ($895B) the US Government has spent since September 11 to fight terrorism. And, with $700B, you could buy every NFL team ten times over!
What You Can Do: Financial crises are not new. In the Bible, in Genesis 47:14-16, we read about the world's first financial crisis and how Joseph managed it. The people were of the mind that money had failed, but Joseph knew better. Money had not failed; rather, Joseph had gathered up all the money.
In the present day, investors, financial institutions, and countries who own the credit default swaps are looking to gather up all the money for themselves. They hope to make billions if not trillions. A bailout will support this. I suggest to you that $700B will be more wisely spent in other ways. Encourage your elected officials to consider the types of alternatives outlined above.
Most likely, you're wondering what immediate action to take with your investments. If you have at least five more years before you need to liquidate your investments, stay put for now until we get a revised plan or markets bottom out. If you are risky and are thinking about get into the market now, perhaps waiting would be the prudent thing to do.
But if nothing else, do this: Remember that Jesus is Lord and do business ‘til He comes.
Luke 19:11-13 (NKJV)
For more information, please contact Hakeem Webb at 203-757-7907.
Hakeem J. Webb, is Co-Founder & CEO National Christian Financial Advisors, Inc., author: his new book is HELP! I TITHE BUT I'M STILL BROKE! A Christian Guide To Financial Planning and author of the Money, Success & Wealth SermonarsTM system. He can be reached at 1.866.540.3129 ext. 102 or visit his website: www.NCFALLC.com.
Hakeem Webb is an investment advisory representative offering advisory services through Creative Financial Designs, Inc., a Registered Investment Adviser, and a registered securities representative offering securities through CFD Investments, Inc., a Registered Broker Dealer, Member FINRA & SIPC. 2704 South Goyer, Kokomo, IN 46902. National Christian Financial Advisors, Inc. is not affiliated with Creative Financial Designs or CFD Investments.
The Obama health plan can be found on his campaigns website: www.obama.com; Invest in higher education cost are based on the average cost for state universities; The estimated cost for building new schools can be calculated based on information given from the OMB; and the house calculation is based on the $700 billion bailout divided by the median house price of $203,000.
