Sue Horgen (CFO) and I went to a luncheon sponsored by Union Bank of California. TRM has used Union bank for over 20 years. Why? Many years ago, when the Mission was short on cash, short on credit, and no assets, Union Bank was the only bank to be willing to loan us a line of credit. All these years later, we’re still with them. The luncheon was primarily to hear some economists talk about what their predictions for the end of the recession might be, based upon their data. Interesting points: 1. A recession is two consecutive quarters of negative growth. But the length of a recession is determined when a market is at its peak (Dec 07) to the bottom (who knows?). As it stands now, this recession is one of longest recorded. (16 months) 2. The housing market issues triggered the banking problems, these economists suggest that the housing market will be a leading indicator when it starts to climb out. Based on that, the good news is the unsold houses on the market are shrinking and they hope will be more manageable by summer. 3. They are predicting it will end in Sept/Oct., but are hedging their bets. What does this mean to the Mission? It means that we do the following: 1. Keep prayerful and trust that God will provide. 2. Make sure we are doing everything we can to be effective in our work and look for opportunities to help those in need. 3. Plan to be prudent and efficient in the 2009/2010 budget. It’s good to be informed, and I really respect the discipline of the financial experts. Having said that, we’re gonna stay positive, keep prayerful and look for opportunities to make a difference. Any questions, comments, please post. David.
We must stand on this…”God is in control” and that settles it, we can all sleep tonight in confidence…and thats free
Thanks for the insight and information David and thanks for your comment Marty.
The world economy goes through many ups and downs. Sometimes we are so happy with the ups that we forget about the downs. Then when we are in the downs its difficult to see how we could ever get back up. But we do get back up, forget about the down and repeat the cycle once again.. I’d venture to say God gets more prayers and converts in the down cycles than He gets praises in the up cycles.. but that’s just my up-pinion..
PTL anyway..
As David said, the meeting with the folks from Union Bank was time well spent. What especially impressed me was learning of the very sound financial condition of the bank during these unsettling economic times. Every day we hear about banks that are failing, or not doing what they agreed to do with government bailout funds they have received. The bank that holds TRM’s assets, because of its healthy balance sheet, did not need to accept bailout funds. Part of our stewardship responsibility is to do our best to secure the assets that have been entrusted to us. I feel confident that we are making our best effort to do this as investors in a sound financial institution.
As far as the recession and it’s impact on TRM is concerned, I have only this to say. None of us know what the future holds – it is in God’s hands in every aspect of our lives. We have always trusted the Mission’s finances to His divine providence and care, so why would we deter from that now? As we continue to honor Him in our work, I believe that He will continue to provide for us in any and every economic climate.
When I reflect on the amazing work we do each day, I not only think about those of us on the front line working with clients and programs….I recognize the strong foundation of our financial stability due to great people like Sue, Mar, and Lynette. Thank you for your wisdom.God is using your talents! And it is obvious our donors believe God is working through us and trust us to be good stewards. Without you, I would not be able to see the miracles I see every single day!
Thank You!