A Simple Financial Solution

Everyone seems to be talking about the economy now. Even people that normally "dislike" Economics, etc. seem to be interested in the trend of the Dow Jones, etc. Furthermore, with Congress screaming "Armageddon!", it seems as if the world is about to end. But is it really? Such corrections in the market have occurred before (Dot Com bubble burst, Black Thursday, etc.) and the U.S. and the economy survived. Even the Great Depression was not the end (though through the U.S. government it was prolonged). Now understand, I am not happy about what is happening, but much of it is contrived. Much of the problem has come about from greed and improper government interference. In fact, many of the people who caused the problem are the SAME ones trying to "fix" the problem. Now that's scary! Unless, of course, you enjoy living in the United Socialist America.

What can be done to fix the situation? Well, actually there are several solutions. One of the easier and actually "common sensical" solutions would be to remove the Mark-to-Market accounting (a.k.a., Fair Value accounting) requirement and allow the companies to actually free up capital thus improving the liquidity status. Here are some definitions of the Mark-to-Market accounting process:

1. The act of recording the price or value of a security, portfolio or account to reflect its current market value rather than its book value. This is done most often in futures accounts to make sure that margin requirements are being met. If the current market value causes the margin account to fall below its required level, the trader will be faced with a margin call. (WSJ)
2. In terms of mutual funds, a MTM is when the net asset value (NAV) of the fund is valued upon the most current market values. Mutual Funds are marked to market on a daily basis at the market close so that investors have an idea of the fund's NAV. (WSJ)

Furthermore, such accounting methods have consistently led to fraud in the financial arena. (Like we need more of that!)

For more information, check out Forbes.

Where's The Energizer Bunny?

Yes, we are still without power. Fortunately, a generator has been donated, and we were able to save our food in the freezer. They told us the power would be "back on" by Wednesday night or Thursday morning. I hope it's before then, but if not, well, I guess we'll wait.
Hope all of you are fine.

Constitutional Questions

(The following is from the Alliance Defense Fund website. The white papers are also available for download.)

Pulpit Freedom
You may be aware of a special project we’re undertaking here at the Alliance Defense Fund, culminating in an event on Sunday, September 28 called Pulpit Freedom Sunday. We are excited about this opportunity that will, God-willing, give us the opportunity to restore now missing aspects of the First Amendment to our nation’s spiritual leaders. It’s no surprise that not everyone agrees and we have recently come under attack.Many Americans’ attitudes and actions toward slavery, child labor, civil rights, and even the American Revolution itself started in the pews of our nation’s churches. As pastors preached and taught Biblical principles related to those issues and evaluated the politicians who promoted or decried them, their parishioners could decide their own stance in light of Scripture. Starting in 1954, that most basic right was ripped away from our pulpits. The U.S. Congress amended IRS Code 501(c)3 without debate or analysis to restrict the speech of non-profit tax exempt entities, including churches. So, for the last 54 years, out of fear of losing their tax-exempt status, our nation’s pastors and priests have largely remained silent. Rather than risk confrontation, pastors have often self-censored their speech, ignoring blatant immorality in government and too often pronouncing their aversion from speaking about public policy. Those pastors who have longed to be relevant to society, to preach the Gospel in a way that has meaning in modern America, have studiously ignored much that has gone on in every tumultuous election season lest they drew wrath from the IRS.On Pulpit Freedom Sunday, pastors from 20 states will reclaim their constitutional right. From the pulpit, they will advise their congregation what scripture says about today’s issues apply those issues to the candidates standing for election just like their forefathers did for 150 years. This week, the Washington Post reported opposition to Pulpit Freedom Sunday spearheaded by Americans United for Separation of Church and State. You can read that article by clicking here. (You can read a response to that article from ADF Attorney Erik Stanley by clicking here.) Those who oppose us publicly demand “separation of church and state” when it suits their agenda. They claim to defend “free speech,” when, actually, they want the government to monitor, censor, and control what happens in our churches and punish those whose speech violates their dark vision for America’s future.At ADF, we do not welcome attacks but understand they will come as we humbly seek to do God’s will to defend these pastors who love God and want to serve Him. We expect complaints will be made to the IRS. We will pray and stand firm. We will represent these pastors should they come under fire and we will fight this battle all the way to the U.S. Supreme Court, if necessary. It is just that important. As theologian Dr. John Frame notes, initiatives of this type are part and parcel of our constitutional legal system:
“In some systems of law, including the United States, the only way to establish the unconstitutionality of a law is by means of a test case. Someone must break that law, undergo trial, and then use as a defense that the law is unconstitutional. Such test-case lawbreaking is not a violation of the overall system of law… but rather attempts to purify the system by eliminating inappropriate legislation.”We will fight this battle because it is the right thing to do. Our pastors and priests should be able to use their knowledge of Scripture to advise us in all areas of life, even in politics. By God’s grace, we will win this battle, but we cannot do it alone. We need your prayers, your support and the Lord’s blessing and protection. John 15:5.

Ever have this problem?



(copyright - S. Phelps, owner)

Funny Illustration

An elderly man was desperately ill. Knowing the time for his departure was near, he called for his closest friends to come see him one last time. Attending him were his doctor, his pastor and his business manager. The old man said, “I know you can’t take it with you, but who knows for sure? What if the experts are mistaken? I want to account for all possibilities. So I’m giving you each an envelope containing $100,000. When I die, I want you each to slip the envelope in my jacket pocket at the funeral service. Then, if I do need money in the life to come, I’ll be ready. And I’m giving the envelopes to you because you are my most trusted friends.” Shortly thereafter, the man did die. Each of his three friends was seen slipping something into the deceased’s coat pocket as he walked up to the casket to pay his final respects. Following the service, while these friends were visiting with each other, the doctor, with a sheepish look on his face, said, “Guys, I have a confession to make. You know with the cost of medicine today, I don’t make that much money. The hospital is desperate for funds. We can’t even replace the CAT scan machine that’s broken down. So, I took $20,000 for the new CAT scan and put the rest in the coffin.” The minister cleared his throat and looked down at his shoes. He said, “I, too, have a confession to make. As you know, our church is seriously overburdened by the needs of the homeless. I couldn’t just see burying that money. So, in hopes of helping the homeless, I took $50,000 out of the envelope and put the rest in his pocket.” Looking sternly at the doctor and the minister, the businessman exclaimed, “I can’t believe what I’m hearing. I am astonished and deeply disappointed that you would treat a solemn trust so casually. He was our friend. I want you to know that I placed in his casket my personal check for the full $100,000.”

(From Sins We Love, Randy Rowland, p. 125-126)

This Makes Me Feel Better (and yes, it's from the 90's!!!)