Discussions of Mormons and Mormon life, Book of Mormon issues and evidences, and other Latter-day Saint (LDS) topics.

Saturday, July 12, 2008

IndyMac and Looming Bank Failures

Breaking news from Reuters on IndyMac:
U.S. banking regulators swooped in to seize mortgage lender IndyMac Bancorp Inc (NYSE:IMB) on Friday after withdrawals by panicked depositors led to the third-largest banking failure in U.S. history.

California-based IndyMac, which specialized in a type of mortgage that often required minimal documents from borrowers, became the fifth U.S. bank to fail this year as a housing bust and credit crunch strain financial institutions. . . .
How's your food storage? Thought about spending less on vacation and more on preparing for the future? Though less important than food, have you thought about moving some assets into something like silver or other things that don't drop to zero over night, and that can withstand a plummeting dollar?

If ever there has been a time to take the teachings of the Church seriously in terms of preparing for the future and living providently, this is it.

The financial crisis stemming from the housing bubble and insane banking policies is hardly over. While investors, home-owners, and ordinary consumers are being punished, the big boys in banking are moving for one of the biggest power grabs ever, as they assume centralized control over regulating their own industry. I was chilled this week as I listened to a speech from Federal Reserve Chairman Bernanke pushing for transfer of new powers to the Federal Reserve Bank to better ensure "stability" and "order" - meaning that the taxpayers are going to bail out selected bankers at huge expense, and that vast new powers are being given to the folks who really need to be investigated. Check and balances? Constitution? Throw those babies out the window. The Book of Mormon's parallels to this time (Alma, Helaman, and 3rd Nephi, and even Ether) are meaningful, prophetically selected, and worthy of careful study.

I DON'T think we're facing chaos and total disaster - don't panic or become depressed. I think the unwinding in future months may in fact be orderly - but it could be a gradual unwinding of your retirement and financial well-being. Great caution and preparation are needed. Focus on basics, on getting out of debt, and on following the teachings of the prophets in preparing your family temporally. Do expect food prices to continue to climb in the long-term and prepare.

And while you're at it, why not encourage America to produce a little more of the vast energy resources we are not using to help us become more secure as a nation?

5 comments:

Anonymous said...

What gets me is that China and Cuba can (if they wish) drill near the Florida coast, while our own companies are banned from accessing oil within a significant span around our shores. And other nations can build all the refineries and power plants and nuclear facilities they need, while we can't. The reason we "can't drill our way out" of this crisis isn't because we don't have vast energy resources - we do - but because politicians stop us from doing what we need to do.

Anonymous said...

Source: http://fromtheduke.blogspot.com/2008/06/china-and-cuba-drilling-for-our-oil.html.

Joel said...

Last sentence made me laugh. What under-utilized resources do we need to develop in order to change the current energy crisis?

cadams said...

The bloggernacle is not discussing this issue of bank/company/institutional collapse as it should. We should have been more responsive to this as Latter-day Saints.

Scott and Jillian said...

Plus, the govt. is paying farmers NOT to plant certain crops. How is that going to help our situation any? Hmmm...

My husband and I, as well as some friends in our ward, have been watching all of this unraveling and feel strongly the way you do. It is so important to listen to our prophet's voice. They know what is coming and are giving us this council for a reason. Hence the name "Prophet, Seer & Revelator".