ASi ADVENTIST–LAY PERSONS SERVICES & INDUSTRIES

1. ASiADVENTIST–LAY PERSONS SERVICES & INDUSTRIES Inter-American Division 13th International Convention THEME: BLESSED TO SERVE Barcelo San Jose Palacio Costa Rica August 14-17, 2013

2. ASiADVENTIST –LAY PERSONS SERVICES & INDUSTRIES Inter-American Division PRESENTATION TOPIC: “PERSONAL & BUSINESS SURVIVAL AFTER A FINANCIAL MELTOWN” August 15 & 16, 2013.

3. PREPARED & PRESENTED BY: WALDON B. WRIGHT, MBA, Bsc, Dip. Pharm • TREASURER, EAST JAMAICA CONFERENCE OF SDA • SEMINAR PRESENTER, LOCALLY & INTERNATIONALLY • Married to Violet, Nursing educator; a union which produced three (3) sons. • FORMER: • OFFICER IN CHARGE – BUSINESS LOANS & SPECIAL PROJECTS, CHURCHES CREDIT UNION • CORPORATE EXECUTIVE in the Finance Industry • UNIVERSITY LECTURER Prepared & presented by Waldon Wright, MBA.

4. THOUGHT • Don’t tell God how big the financial storm is, tell the financial storm how big God is. Prepared & presented by Waldon Wright, MBA.

5. OVERVIEW OF PRESENTATION • Objectives • Deliverables • Questions for You • God’s desire for His People • Financial meltdown • Causes of Financial Meltdown • Aftermath Assessment • Survival Strategies 9 – 10. Summary and Conclusion Prepared & presented by Waldon Wright, MBA.

6. 1. MAIN OBJECTIVES • To outline God’s desire for His people including infinancially challenging times such as during and after a financial meltdown • To share with you on Financial meltdown, its causes, and aftermath assessment • To share principles and strategies for personal and business survival after a financial meltdown. Prepared & presented by Waldon Wright, MBA.

7. 2. DELIVERABLES At the end of this presentation you should be able to: • State God’s desire for His people • Explain what is a financial meltdown and state at least four causes of a financial meltdown • Identify some of the effects of a financial meltdown and name 4 countries affected • Identify some things to consider in an aftermath assessment • State at least four (4) things and strategies that you can implement to help you and or your business survive after a financial meltdown. Prepared & presented by Waldon Wright, MBA.

8. 3. QUESTIONS FOR YOU • Do you believe that God designed and predestined financial meltdown to punish some of His people and their businesses with unemployment, loss of assets, and poverty? • Do you believe that bad things happen only to bad people and good things happen only to good people? • How do you think that your response has affected your present situation in life today? Prepared & presented by Waldon Wright, MBA.

9. 4. GOD’S DESIRE FOR HIS PEOPLE • What does the Bible say is God’s desire for His people? • a) Prosperity – Prosper and be in health (3 John 2, Mal. 3:10; Jer. 29:11) • b) Peace - (Psalm 119:165) • ii) Is God’s good desire for His people and their business automatic or conditional? See Deut. 30: 9-10. Prepared & presented by Waldon Wright, MBA.

10. 4. GOD’S DESIRE FOR HIS PEOPLE • ii) Is God’s desire for his people and their business automatic or conditional? Read below Deut. 30: 9-10. • 9And the LORD thy God will make thee plenteous in every • work of thine hand, in the fruit of thy body, and in the fruit • of thy cattle, and in the fruit of thy land, for good: for the • LORD will again rejoice over thee for good, as he rejoiced • over thy fathers: • 10Ifthou shalt hearken unto the voice of the LORD thy God, • to keep his commandmentsand his statutes which are • written in this book of the law, and if thou turn unto the • LORD thy God with all thine heart, and with all thy soul.” Prepared & presented by Waldon Wright, MBA.

11. 5. FINANCIAL MELTDOWN What is a financial meltdown? 1. “Refers to events like steep fall in stock markets, decline in asset values, corporate losses etc. that hurt the economy and lead to losses for investors.” http://financial-dictionary.thefreedictionary.com Prepared & presented by Waldon Wright, MBA.

12. 5. FINANCIAL MELTDOWN What is a financial meltdown? 2.“A financial meltdown refers to a malfunction, breakdown, failure or collapse of a national or international monetary, banking and/or credit system. The results are economic instability, chaos, turbulence or collapse.” http://www.financialmeltdown.com Prepared & presented by Waldon Wright, MBA.

13. 5. FINANCIAL MELTDOWN What is a financial meltdown? 3.“The meltdown can briefly be described as a freeze-up of credit in a system that is saturated with debt that can no longer easily be serviced. Lenders are unwilling or unable to lend and borrowers are unwilling, unable or unqualified to borrow. All of this is taking place in an environment where the value of most collateral is depreciating.” Ibid Prepared & presented by Waldon Wright, MBA.

14. 5. FINANCIAL MELTDOWN What is a financial meltdown? • Financial meltdown can take place in any country, large or small. • The world has become a global village, with the connectivity and dependency of economies (trade, globalization) upon one another; what happens in one country affect others. Prepared & presented by Waldon Wright, MBA.

15. 5. FINANCIAL MELTDOWN What is a financial meltdown? 6. Net results of a financial meltdown: a) Many people all around the world lose large portions of their wealth. b) Many people lose their homes and their jobs. c) Small and large businesses worldwide are forced into bankruptcy. d) Entire nations face bankruptcy. E.g. Greece.  Prepared & presented by Waldon Wright, MBA.

16. 6. CAUSES OF FINANCIAL MELTDOWN • The Biblical Perspective a) Unethical, unbridled greed, and the love of money. 1 Tim. 6:10; Eccl. 7:29 b) The wicked borroweth and does not repay. Psalm 37:21 c) “… when the wicked beareth rule the people mourn..” Proverb 29:2 Prepared & presented by Waldon Wright, MBA.

17. 6. CAUSES OF FINANCIAL MELTDOWN • The Biblical Perspective d) Robbers of God result in individual and national curse and disaster. Mal. 2:2, 3:8-12. e) Disobedience to God’s commandments lead to curse instead of God’s blessings. Mal. 2:2; Deut. 28:15. f) Choice of the devil as leader instead of God. John 8:44 Prepared & presented by Waldon Wright, MBA.

18. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective a) Unbridled or runaway greed – the one persistent culprit that is common to every known financial meltdown in history. http://www.financialmeltdown.com Eccl. 7:29; 1 Tim. 6:10. Prepared & presented by Waldon Wright, MBA.

19. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective b) Moral, market, or other causes. E.g. 1 - Argentina, 2002 * Approx. 50% of citizens of this once-rich country were living below the poverty line; * Defaulted on its foreign public debt * Economy shrank 11%; 1991-1997 the economy grew by 6.7% p.a. on average, 2nd only to Chile in Latin America Prepared & presented by Waldon Wright, MBA.

20. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective b) Moral, market, or other causes. E.g. 1 - Argentina, 2002 * Reasons for the meltdown - Too large budget deficit; - Large public spending over revenues resulting in unsustainable accumulation of public debt (collapsing revenue & ballooning interest payments); - Cutting Govt. wages & pensions by 13% in Aug. 2001, not enough to prevent the crisis. Prepared & presented by Waldon Wright, MBA.

21. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective b) Moral, market, or other causes. E.g. 2 - Thailand, South Korea, Malaysia, & Indonesia, 1997 & 1998. * All four currencies collapsed and had to be renegotiated. * Indonesia and Thailand also suffered full fledged banking crisis. Prepared & presented by Waldon Wright, MBA.

22. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective b) Moral, market, or other causes. E.g. 2 - Thailand, South Korea, Malaysia, & Indonesia, 1997 & 1998. * All four economies grew spectacularly in the previous decade with South Korea becoming a world class industrial power. * Good macro economic and exchange rate management was a key ingredient in their recipe for success. Prepared & presented by Waldon Wright, MBA.

23. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective b) Moral, market, or other causes. E.g. 2 - Causes for their financial crises: - Poorly regulated banks; - Too much short-term debt; - Govt. guarantees; - Over-investment; - Quasi-relations between politicians and business men; - Outright corruption, market failure, and institutional weaknesses. Prepared & presented by Waldon Wright, MBA.

24. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective c) Collapse of a country currency (which loses much of its value against the dollar) occurs in most financial meltdown crises. Prepared & presented by Waldon Wright, MBA.

25. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective d) What else is involvedin a financial crisis changes from country to country and also has tended to change over time. E.g. 1: Govt. defaults on its more expensive external debt. E.g. 2: Private firms/businesses often times cannot pay their debts. Prepared & presented by Waldon Wright, MBA.

26. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective e) Other causes: E.g. 1: Banks get into trouble (run on banks) E.g. 2: Countries (emerging markets) that suffered currency or financial meltdown since 1980 include: Argentina (twice); Bolivia; Brazil (twice); Bulgaria; Chile; Columbia; The Dominican Republic; Ecuador; Hungary; Indonesia; Korea; Malaysia; Panama; Mexico (twice) Prepared & presented by Waldon Wright, MBA.

27. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective f) What is behind the meltdown/crises? * Going back to the 1960s & the 970s, the answer seem clear: “Living beyond your means.” * At the individual level, it means spending more than you earn or your income. * At the business level, it means income exceed expenses and cash outflows exceed cash inflows. Prepared & presented by Waldon Wright, MBA.

28. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective f) What is behind the meltdown/crises? * At the national level, we speak of the current account deficit. * A current account deficit is by definition an excess of expenditure over national income. Solution: Reduce expenditure and your problem will go away. Prepared & presented by Waldon Wright, MBA.

29. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective f) What is behind the meltdown/crises? “Post-mortem of the 1980s – Imprudent behaviour by countries was to be blamed. NB: i) Too much borrowing hikes interest payments thereby swelling expenses. ii) We consume too much and invest too little. iii) So the moral failure was double: spending too much; and spending on the wrong items. iv) The elements are there for a spike in loans followed by a crash. Prepared & presented by Waldon Wright, MBA.

30. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective f) What is behind the meltdown/crises? The USA situation of 2007/2008 * Financial institutions lured the unsuspecting consumer to carry excessive debt burden. * Very low interest rates by the Federal Reserve ^ Banks made more money by lending; more loans, more profit for the banks. ^ Variable interest rate lending Prepared & presented by Waldon Wright, MBA.

31. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective f) What is behind the meltdown/crises? The USA situation of 2007/2008 * Mortgage lending into collateralized securities of dubious quality/derivatives – Mortgage-backed securities (MBS) * Sub-prime lending * Banks ceased lending * Unregulated lending and lack of supervision of the banks. Prepared & presented by Waldon Wright, MBA.

32. 6. CAUSES OF FINANCIAL MELTDOWN ii) Realities (Past & Present) Reflect the Biblical Perspective f) What is behind the meltdown/crises? The USA situation of 2007/2008 Result/Impact: 2.6 million net job losses in 2008 (with 524,000 in December 2008 alone) rising to 11.1 million (or 7.2% unemployment rate) –BBC News. Also multi-nation recession (More than 1% of all USA householders was in some stage of foreclosure in 2008; Banks repossessed 850,000 properties. For Dec 2008, 303,410 houses were in some stages of foreclosure.) Prepared & presented by Waldon Wright, MBA.

33. 7. AFTERMATH ASSESSMENT i) Thought provoking questions a) How do you go forward if you experienced a financial meltdown? b) If you have never experienced a financial meltdown, what can you do to cope if one comes your way in the future? ii) Response a) Review what happened and ensure that you clearly and correctly understand the problem b) Identify what lessons you have learned and what you need to do differently going forward. Prepared & presented by Waldon Wright, MBA.

34. 7. AFTERMATH ASSESSMENT ii) Response c) Assess your situation objectively and honestly to ascertain what damage or loss you have suffered bearing in mind the great controversy. d) If you never experienced a financial meltdown you may inquire from those you know who have experience it and or research the matter so as to be prepared if one comes your way. e) Review your core values and ethical standards to ensure that they are still intact. Make amends where necessary. Prepared & presented by Waldon Wright, MBA.

35. 7. AFTERMATH ASSESSMENT ii) Response f) Assess the aftermath to identify what changes have taken place, such as: > Is the stock market on the rebound? Are assets values rising? > Are corporate losses being replaced by profits? Are housing prices on the rise again? > Is the economy on the rebound? Is the dollar gaining in value? Is employment on the rise again? Are the banks and other lenders lending again? Are borrowers willing and qualified to borrow again? Prepared & presented by Waldon Wright, MBA.

36. 7. AFTERMATH ASSESSMENT ii) Response Answers to these questions will give you a good guide as to how to proceed. They will indicate in what sectors and industries are emerging opportunities and where to invest. They will also help you to develop survival strategies. Prepared & presented by Waldon Wright, MBA.

37. 8. SURVIVAL PRINCIPLES AND STARTEGIES • Resolve to pass your past, so you can go forward, especially if you suffered a lot and lost assets or wealth. • Remember and believe that good things happen to bad people and bad things happen to good people. (Remember Job and Joseph.) • Resolve to be faithful and obedient to God and His commandments and ask Him for wisdom. • Live within your means a) Individual level: Spend less than you earn b) Business level: Contain expenses within income and cash outflows within cash inflows Prepared & presented by Waldon Wright, MBA.

38. 8. SURVIVAL PRINCIPLES AND STARTEGIES iv) Live within your means c) National level: A current account surplus; if individuals and businesses operate within their means (income/inflows), the aggregate effect is that it with go toward creating a current account surplus; and good ethical and prudent national governance with ensure this happens. • Caress opportunities for an individual or business (entity): a) If income exceeds its expenditure, the individual or entity can lend or invest the excess income. Prepared & presented by Waldon Wright, MBA.

39. 8. SURVIVAL PRINCIPLES AND STARTEGIES b) If income of the individual or entity is less than its expenditure, then either can raise capital by borrowing or selling equity claims, decreasing its expenses, or by increasing income. c) A key survival strategy is to remain liquid during and after a financial meltdown. vi) Think long-term with goals and investing. vii) Return faithful tithe and offering proportionate to God’s blessings on you and or your business. viii) Maintain emergency savings and build up your liquidity. Prepared & presented by Waldon Wright, MBA.

40. 8. SURVIVAL PRINCIPLES AND STARTEGIES ix) Minimize the use of debt and credit cards x) Develop a saving philosophy rather than a wasteful mentality. A cash budget can be a useful tool to help you achieve this goal. • If you are unemployed, but have entrepreneurial characteristics and skills, examine the option of starting your own business. • Maintain your values and integrity at all costs and under all circumstances like Joseph and Job. Prepared & presented by Waldon Wright, MBA.

41. QUESTIONS AND ANSWER TIMEBEFORESUMMARY & CONCLUSION Prepared & presented by Waldon Wright, MBA.

42. 9. SUMMARY & CONCLUSION • God does not plan nor predestine that bad things should happen to His (good) people or their business? • God’s desire for his people to have prosperity and peace is conditional upon their love for Him and obedience to His commandments. • A Financial meltdown is not a design of God to punish anyone, but is an aberration arising from human’s sin and departure from God’s standard and manifested in avarice and selfishness. Prepared & presented by Waldon Wright, MBA.

43. 9. SUMMARY & CONCLUSION • The impact of Financial meltdown includes: * Loss of assets/wealth by many; * Many persons lose their homes and jobs; * Businesses– large and small – worldwide are forced into bankruptcy. * Entire nations face bankruptcy v) A major and recurrent cause of financial meltdown is sin manifested in unethical, unbridled greed, and the love of money . Prepared & presented by Waldon Wright, MBA.

44. 9. SUMMARY & CONCLUSION • Each person and business should objectively and thorough assess how each is affected by the meltdown and strategize how to go forward. • A prudent survival strategy should include: a) Choosing to be faithful and obedient to God; b) Living within ones means at the individual and business levels and caressing the opportunities they provide. c) Remaining liquid and being long-term with goals and investing., and maintain integrity. Prepared & presented by Waldon Wright, MBA.

45. 10. CONCLUSION Jeremiah 29:11 For I know the plans I have for you, declares the Lord, Plans to prosper you and not to harm you, plans to give you hope and a future. Prepared & presented by Waldon Wright, MBA.

46. ASiADVENTIST –LAY PERSONS SERVICES & INDUSTRIES The End Inter-American Division Thank You