Friday, January 9, 2009

Credit Crunch...............(2)

One of the news that caught my eye that morning (over a month ago) was ‘Oil falls below $56 as Japan slips into recession’; my heart sank……
Japan? A whole Japan into recession? Japan is the world’s 2nd largest economy now?
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Meanwhile…..permit me to feel like an economics teacher…….
A recession is a decline in a country's gross domestic product (GDP), or a negative real economic growth, for two or more successive quarters of a year. Credit crunches are usually considered to be an extension of recessions.
A credit crunch makes it nearly impossible for companies to borrow because lenders are scared of bankruptcies or defaults, which results in higher rates.
The consequence is a prolonged recession (or slower recovery), which occurs as a result of the shrinking credit supply.
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All this grammar means there is global meltdown, the world is in financial crisis, there is austerity..........in short 'there is shortage of money all over the world'
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There is recession in the United states, Asia and in Europe, and from all the news and reports, its forecasted the recession would be sustained, I don’t need to bore you with news of recession, or financial crises, record time fall in price of oil or increased terrorism that you are well aware about (after all, our media has been feeding us with no other news but these ills)
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While I’m quick to admit that I am not an economist, and I have no professional skills to discuss financial matters……. But after reading so much of people’s comments, fears, forecasts and predictions, I've been forming my own opinion (it's been the same since my last post here on credit crunch-1 )
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For the first time in a lot of years, we are in a ‘direction-less’ world, people are asking where is the safest place to keep ones money? What investment are the wisest to make now? What part of the world would be spared this impending disaster? Where is the world financial power shifting to? There are no answers!…….the hearts of men are failing and every one is just facing the future with dread, caution and in-uncertainty.
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I’ve read that Africa has been ‘untouched’ by the global crisis, but I feel that is just an assumption. I know in Nigeria, even though it may feel like the effect is not that pronounced, the truth is that we have not been spared the effect of the world crisis;
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A lot of Nigerians have lost money in the stock market, the Nigerian stock exchange is crashing by the day, banks are in search of liquid funds, I think the banks would go into depression soon, some bankers may loose their jobs e.t.c
The value of the Naira is dropping gradually (despite the central Bank of Nigeria’s assuring us otherwise) prices of things would go up, cost of living would increse.
Price of oil per barrel has drastically dropped, Federal government is predicting ‘no NEPA”, and with the current drop in real estate……..so many over priced& underpriced properties…little or no cash flow in the society to buy them etc , the list goes on…………………
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Would you permit me to make my own personal submissions thus;
I still want to believe that the recession would not last, I am not trying to be ‘just optimistic’ neither am I shying away from reality or the facts. The realities/facts have stared us in the face these past months…what have we done with them?..NOTHING! …..they’ve only caused our hearts to fail more.
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So, I choose to look up, to the one who made the world, the one who knows all, and the ONLY one that has ALL the solutions to the problems of the world!
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· I choose to believe the report of the Lord, I choose to believe in the prophecies that ‘there would be a lifting up’
· I choose to be optimistic, I should forge ahead in faith and not in fear
· I choose to believe God’s words
· I believe the American economy would improve; I believe God would grant president Obama’s administration the wisdom to make positive changes.
· I believe the world would recover (even though not without a lot of shakings and unseating of some powers that be now)
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I also think this is NOT a time
· To only gist and make comments about the world financial crisis, or shy away from reality; pretending like you don’t know what’s happening.
· To just shudder, sit in hopelessness, just waiting, watching and hoping…thinking "maybe, maybe thing will get better".
· To be scared and start making irrational decisions propelled by fear…'fear and worry have never be known to solve any problem'
· To be selfish or in sensitive…and think: 'whatever is happening in the world does not affect me', ‘I don’t care, me and my household we will survive’ or think you are immune.
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But I think it’s a season
· To spend more time with the one that created you and this world:
· To seek direction; to find out were to go and when to go, what to invest in, where and what to embrace and what to refrain from.
· To make adjustments; we might need to change jobs, businesses, cut down on expenses or change long/short time plans for our families.
· To seek wisdom and counsel, the tread cautiously before making investments and decisions
· To live in faith, to believe that He would not leave us, He owns all the wealth and treasures of this world, and He alone (not even the best financial analyst) determines what happens to world finances!
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I know people all over the world are praying, and I have heard a lot of encouraging prophesies, I also listened to Pat Robertson’s prediction for the year, I’ve read people‘s comments like this here& here and I am also asking God for direction and I believe we would see great things in 2009!
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Even though I agree that it’s a lesson that would shake the world, to remind us that we don’t always have all the answers! and that America may no longer be the world power on finances and world politics……………I choose to believe we would outlast this recession. I must state that despite all I have written I DO NOT KNOW HOW LONG IT WOULD TAKE TO RECOVER from the recession. .
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I’m reminding myself that:
Isaiah 60:2. "Darkness will cover the earth and gross darkness the people, but the Lord shall arise upon us and His Glory shall be seen upon us"
Deut 8:18 “And you shall remember the LORD your God, for it is He who gives you power to get wealth, that He may establish His covenant which He swore to your fathers, as it is this day.
Ps 50: 10 “For every beast of the forest is Mine, and the cattle upon a thousand hills or upon the mountains where thousands are”

Finally, I should say my thoughts on the global crisis is progressive, I will continue to post as other/different things come to mind on the issue….I really want to say IT IS WELL, (not just a slang to console ourselves) but because I mean it that it will be WELL.

8 comments:

Abujamaiden said...

God, our creator, is the only solution. I hope things get better. Church goers population has increase (I saw on the news) I hope people continue to trust in Him even when things get better.

aloted said...

yes o..indeed it is well...even if there is a casting down in the world, there will be a lifting up for God's own

Beulah! said...

You are spot on here.... This is the time to be strong in God but, Ahem!!.....about that part of banker's losing their jobs, stop am oh!, ee no go be our portion in Jesus' name....

Writefreak said...

Yes! When men are saying there is a casting down, we will continually say there's a lifting up! Amen!

tobenna said...

the epistle according to funke!
You too like 'credit crunch'.
The phrase reminds of a chocolate crunchy bar and not depression. Not sure why.

Danny Bagucci said...

Guess we can be calm through all the financial turmoil caue we know that all things work together for good......... Great read......

Well... You've been tagged on the 2 truths, 1 lie thing....

yankeenaijababe said...

@funke, you were even nice to say America is a recession. Being a student of finance and business, America is in a severe depression o.

I hope Nigeria and the banking industry don't experience such cos job loss will play a negative factor in the Nigerian economy. Hope your weekend is going great. You did great teaching us finance.lol

Olufunke said...

@abujamaiden
I really hope peopel woudl continue to depend on God and live for only His purposes for us. thanks

@aloted
Amen o! God takes care of his own
Thanks

@beulah
Dont worry, you know...a thousand may fall at our right, tens of thousands at our left.......IT WILL NOT COME NEAR US.
no mind me...
thanks!

@Writefreak
I say big AMEN!! thanks

@tobenna
My brother how I for do!!! you know 'crunchy.. . crunchy... .Crunchy.. . .I love the sound of the crunch...like some nice biscuit
thanks!

@Danny Bagucci
I say AMen o, I am really trying to beleive all these would work out for our good
Thanks for tagging me

@yankeenaijababe
MAny thanks.. so I guess its depression for united states
We are praying things would only get better.
I sincerely hope with you &pray that NIgeria will not get that bad o.
Thanks!