Recap Of Town Hall For Hope

Here’s a recap I found of last night’s Town Hall for Hope simulcast/meeting that was put on by Dave Ramsey. www.epicchurchlv.org was a host site, and we had a good turn out.

• The event was seen by 1 million people in 6,000 locations and they billed it as the largest web-cast ever.
• Dave came out and told why he thought America had gotten itself in trouble: We had unprecedented prosperity for the past 25 to 30 years and we got sloppy as a result — bought things we couldn’t afford, made stupid financial moves that weren’t a problem because everything was going up, etc. Then, when the bottom came out of the economic system, the foolishness of these moves was exposed (such as people buying homes they really couldn’t afford.)
• Having said this, Dave said that the actual situation isn’t as bad as the mainstream media is making it out to be. They are panicking, crying, stirring up fear, etc. While Dave admits that our economy is hurting, he says it’s certainly not another Great Depression. In fact, he says it’s not even our worst recession. There were two recessions — 1973/74 and 1982 that were worse than what we’re going through now.
• He believes that the answer to our economic problems is what has made our country great: hard work, businesses with a moral responsibility to their employees and their customers, and individuals working hard and making things happen for themselves. He is COMPLETELY against the “Bush bailouts” and “Obama stimulus” and decried all the money the government is spending — putting generations in debt — just so we don’t feel the pain of our poor economic choices. He’d prefer we feel the pain, take our lumps, suffer a bit, learn from it, and have the recovery happen on its own without government intervention.

That’s the gist of his opening comments, which were about 30 minutes long. Next, he answered questions from people via Facebook, Twitter, YouTube, email, phone, in the audience, etc. Here’s a summary of what he said during his answers:

• He hopes that our current economic situation is like the Great Depression in one way — that it leaves a huge impression on the people and their economic lives are changed (for the better) as a result. Just like the Depression taught people to avoid debt, spend less than they earn, etc., he hopes this recession does the same thing for this generation.
• He believes the best investment for people with a long-term time horizon is stocks. He noted that the S&P 500 has never had a down period over any 15-year period. He said if you had that amount of time or longer, you should buy stocks (he didn’t say it, but I believe he meant index funds as he talked about “buying the market”) since they are at a discount price right now and should return a good amount over the years to come. He also believes real estate is a good investment and said “now is the best time in 30 years to buy a home.”
• He believes that housing will actually lead us out of the recession. Why? Because a certain number of people have to move each year (some die, some get transferred, etc.) but many have held off on this for quite awhile. With interest rates so low, eventually the dam will break and people will start gobbling up homes. As a result, prices will rise quickly. Then prices of new homes will be a bit more competitive, home building will start up again, and the economy will respond as people buy more homes, equip them, etc. He thinks employment and the market will recover after that.
• He said “85% of financial advisers are taught how to sell versus what to sell.”
• He banks with local banks and credit unions because they still treat people like people versus the big banks where you’re simply a number.
• He thinks inflation is likely if the government keeps spending like it is and it could be a problem in the future. In this and in all his other comments, he said he didn’t know these facts for sure, no one does, that these were his opinions. He also noted that “economists’ forecasts are around simply to make weather-men’s forecasts look good.”
• He hates gold as an investment. From 1833 to 2001, gold returned 1% a year. Since 2001, it’s returned 15% a year. It’s at an all-time high now, so you especially don’t want to buy. He also thinks goods and services, not gold, would be the standard currency if things got really bad. His example was New Orleans after Katrina. He noted no one was carrying around bags of gold down there, but trading water, gas, etc.
• He said is could or couldn’t be a good time to start a business. He gave examples of many businesses that were started in bad economic times, so it can be a great time to work for yourself.
• If you don’t have a job, you need to take personal responsibility for your situation and “get after it.” Make things happen. Take action like your life depends on it (since it may.) Too many people are looking for someone else to pick them up when they need to pick themselves up.

He ended the evening with three steps people should take if they need more hope:

1. Get up. Take action. Get moving. Your best bet at success in the long run is you, and you’re not making progress by sitting at home watching Oprah.

2. Don’t participate in loser-talk — grumbling about “how bad it is” and so on. Instead, feed your brain with positive books and positive people that will help you grow. Have a positive, can-do attitude for life.

3. Give. If you’ve lost hope, go volunteer at a soup kitchen and you’ll see what people with no hope look like. You’ll eventually get your focus off yourself, and when you do your hope will return. He believes that if all Americans gave time and money like they should and can, we wouldn’t need the government for any sort of bailouts, social programs, etc. It was a very interesting thought.

Overall, I liked the evening and Dave Ramsey gained a lot of points. It was free to everyone and he simply tried to encourage a nation that’s frightened, hurt, and without hope. Whether he did this or not and whether you agree with him or not, at least you have to give him credit for trying to take action and make the situation better rather than worse.