Posted by: Petros | February 4, 2009

African Seminaries and the current Economic Crisis

I am wondering to what degree African seminaries have been hit by the current market conditions.  I would imagine that donations across the board to Christian charities are down.  Foundations and retirement portifiolios are suffering with the partial collapse of the stock market.

I wouldn’t count on Obama’s leadership making anything better.  I think his stimulus plan, what some have dubbed “porkulus”, has the potential of plunging the world into an economic depression.  I am trying to position my investments such that I am ready for the worst.  This means that I keeping my liquidity at a very high level and my debt low.  This is the right reaction to a downturn, the one that Sarah Palin in Alaska is implementing, and the exact oposite of what Obama plans to do; it’s irresponsible.  I am keeping a significant portion of my investments in gold mining stocks as a hedge against inflation.  I am beginning to think now that the stock market won’t recover from the fall of the annus horribilis of 2008 for at least four years.  The S&P TSX (Toronto stock exchange) composite index has fallen considerably from its high on May 9, 2008, of 14625.76 and closed today at  8693.09, a shrinkage of 40%; the Dow Jones is down 44% since October.  Retirees who depend on stocks and bonds have seen a great percentage of their incomes drop because of lowering of dividends and of the interest rates.  Some people who were planning to retire are going to have to keep working because they no longer have enough to retire on.  Conventional wisdom regarding investments has been turned on its head.

Seminaries in Africa who depend on Western aid are undoubtedly already feeling the pain.  I wonder what the future holds.


Responses

  1. […] Budget and Charitable Giving I asked earlier how the economic crisis is affecting African faculties of theology.  Now the New York Times […]


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