Dow Creeps Toward 8000

I’m checking the stock market. Looks like it’s still headed down.

My gut tells me this is bad news. We took a big hit when the housing hysteria fizzled, and then Bush and Obama gave us a painkiller, in the form of bailouts and socialist “stimulus” spending. That calmed us down for a while. But there was no reason to expect it to work in the long term. We were spending money we didn’t have, and which we were obligated to repay to hostile nations, from future earnings, which we had no reason to expect. How can that be a good plan? If you lose your job, you can have a couple of great months anyway, just by maxing out your credit cards. But the third month…that’s when reality will set in. And you’ll be worse off than you would have been, had you done nothing. If you’re going to borrow, you should either have the money in hand before you take the loan (which is an odd thing to do), or you should be very sure you will earn enough in the future to cover it. We’re not sure at all. In fact, even Obama says the worst is still ahead.

I am reminded of a story about a Ferrari. Someone I knew bought a car when he was living on student loans. It
was not an expensive car. But his friends called it “the Ferrari.” Why did they call it that? Because of the interest. In the end, he was going to pay enough to buy a fancy luxury car. Maybe not a Ferrari, but certainly, something a lot nicer than what he got.

I won’t claim to be smarter than he was. I’ve bought stupid things, including nice stereo speakers, with loan money. But his story serves to illustrate the inadvisability of going into debt when it’s not necessary.

The stock market and the economy run largely on optimism. When the government started slapping Band-Aids on our problems, it made people feel good, and I’m sure that fueled the recent rally. But what’s going to happen when the placebo effect wears out? If Obama gives us a false sense of security by passing out money, and then we have another downturn, isn’t it safe to assume that passing out money will not have the same effect in the future?

If that’s true, where are the brakes now? The only answer is true productivity. Something Obama-style government smothers.

Unemployment is high. People claim this is a lagging indicator, meaning it tells you what has already happened, not what will happen in the future. But can that really be true? Wealth comes from work; there is no other source.

If there is less work, how can there be more wealth? I’m no economist, but it seems to me that unemployment figures have to be powerful omens, barring an unforeseen change that creates jobs.

I put my hope in God. I think that’s what we’re supposed to do. I still think our country’s current problems stem from rebellion, and I am going to be surprised if we ever resume our spot at the top.

31 Therefore take no thought, saying, What shall we eat? or, What shall we drink? or, Wherewithal shall we be clothed?

32 (For after all these things do the Gentiles seek:) for your heavenly Father knoweth that ye have need of all these things.

33 But seek ye first the kingdom of God, and his righteousness; and all these things shall be added unto you.

34 Take therefore no thought for the morrow: for the morrow shall take thought for the things of itself. Sufficient unto the day is the evil thereof.

I think that if you lead a godless life and you believe you succeed because of your own strength, you are buying a Ford at Ferrari prices. Like Esau, you’re selling your future to pay for the present. This has to be why the Bible calls that kind of life “vanity” and “leasing.” All these things are stripped away from you at death; none of it follows you. It’s like a rented apartment. You don’t own it, so you will eventually have to get out. But the good things you do follow you into the next life. The Bible says that; I can’t recall where. I read it yesterday. I do recall the phrase about storing up riches in heaven, which amounts to the same thing.

You have to find out what lasts and then invest in it. That’s how I see it these days. I hope I can find something useful to do, which will meet my needs and help me to meet the needs of others.