Kindly Note This presentation is solely intended to

Kindly Note: This presentation is solely intended to be general information that might be beneficial to stewards of all types. Please do not consider it to be counsel that you should act upon without researching in-depth and/or consulting your various financial, legal or spiritual advisors. “Affinity marketers, ” particularly in the religious communities, have too often hurt our faith and investors. We hope to help change that. But be prudent. While “the workman is worthy of his wages, ” be particularly careful if you sense the presenter is more interested in your business than the ethic of the Abrahamic faiths. 5

Dr. David Miller, former investment banker, author of God at Work and current Director of the Princeton University Faith & Work Initiative reviewed this seminar and wrote: “Remember the old brokerage firm ad, ‘When E. F. Hutton talks, people listen’? Today’s version should be, ‘When Gary Moore talks, concerned Americans should listen. ’ Moore’s insights into financial planning with ethical and spiritual integrity should be mandatory study in every college, seminary and investment firm. ” 6

“With gratitude to The Financial Seminary, the Interfaith Center for Corporate Responsibility has used the material presented in a wide variety of member programs and welcomes the opportunity to at long last have the entire presentation to share with their members and friends in congregations throughout the United States. ” Laura Berry Executive Director ICCR (300 Religious Institutional Investors Stewarding $100 Billion) 7

This is an advanced seminar that seeks to prompt a deeper, more enriching way of thinking and seeing our world, and then acting upon that perspective, which is largely what religion is when it comes to economics. So we suggest you simply relax and listen to your presenter, take the handouts home to study, and perhaps go online to www. financialseminary. org to review the presentation, including the presenter’s comments. 8

Financial Fusion: Re-Integrating Faith & Wealth Management Copyright @ Financial Seminary 2010 9

This seminar was created by Gary Moore. He has a degree in political science and was a senior vice president of investments with a major Wall Street investment firm during the late ’ 80’s before founding The Financial Seminary. He has served on the boards of the John Templeton Foundation, Opportunity International, The Crystal Cathedral, Messiah College and Empower America, as well as his local YMCA, Samaritan Ministries and church. He has been a commentator for UPI. You will immediately notice that he does not teach with authority but as a “wounded healer” who has learned from others wiser than himself, to whom he is most grateful. 10

Yet, despite the claims of “prosperity theology” and “name it and claim it religion, ” nothing Gary has learned the past twenty-five years has challenged the old wisdom regarding wealth and the eye of the needle. John Wesley, the founder of Methodism, taught that the thrift and work ethic of the Puritan approach to Christianity would inevitably enrich a nation; but that wealth would likely destroy the morality that created it. The recent experiences of our nation should make us wonder if Wesley might have had a point. So it is Gary’s hope that this seminar might simply help a few dedicated souls to make a most difficult journey, one that Christ said is “impossible for man but possible with God. ” 11

Gary grew up in a devout but poor home. As he grew older and prospered, he increasingly experienced the tensions between faith and wealth. He also saw how that was affecting him and his friends, both mentally and spiritually. He thought of attending seminary but discovered they didn’t deal with these issues any longer. He also found the church to be of little help. Yet he did find two “modern prophets, ” both now deceased, who were instrumental to any progress he might have made. 12

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“Religious views are important to whatever anyone does--investing, writing articles, anything. How you see yourself in relation to others and your Creator, why, it’s the most important thing that there is because you think most clearly only if you’re at peace with yourself and your Creator. ” Sir John Templeton 15

“This extraordinary man believes that successful investing is a product of a person’s overall relationship to life, to the universe. Unlike most of us, Templeton is at peace with himself. He has sorted things out. He believes that God created and is creating the universe. This gives Templeton extra mental energy to make and stand by his decisions. ” Forbes 16

“The individual needs the return to spiritual virtues, for he can survive in the present human situation by reaffirming that man is not just a biological and psychological being but also a spiritual being, that is creature, and existing for the purposes of his Creator and subject to him. ” Peter Drucker Landmarks of Tomorrow 17

“Peter Drucker’s ability to prophesy--almost always correctly--was uncanny. ” Steve Forbes The Wall Street Journal 18

Q#1: Do other thoughtful people and history agree we should, even could, go back to the future? 19

A#1: Definitely! “One cannot understand current political or ethical trends, or properly forecast future economic developments, without understanding the cycles in religious feelings in American history. ” Robert Fogel, Ph. D. Nobel Laureate in Economics & Religious Skeptic The Fourth Great Awakening 20

“Rather than denigrating Christianity and religion in general, socially conscious elites ought to be asking what the religious impulse can teach us. ” Robert L. Bartley Editor Emeritus The Wall Street Journal 21

“If we do not manage our affairs both spiritually and socially in a responsible manner, we will inevitably come to regret it later. ” The Dalai Lama 22

“I wish that on every bedside table, next to the Bible, there was an article explaining the nature of investing, because people are still either too confused, intimidated or busy to know what to do. ” Peter Lynch Former Manager Fidelity Magellan Fund 23

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“It is embarrassing to live in the most comfortable time in the history of man and not be happy. Auden called his era the age of anxiety. I think what was at the heart of the dread in those days, just a few years into modern times, was that we could tell we were beginning to lose God. And it is a terrible thing when people lose God. Life is difficult and people are afraid, and to be without God is to lose man’s great source of consolation and coherence. I don’t think it is unconnected to the boomers’ predicament that as a country we were losing God just as they were being born. ” Peggy Noonan Life, Liberty and the Pursuit of Happiness 25

“The people who created this country built a moral structure around money. The Puritan legacy inhibited luxury and self-indulgence. For centuries, it remained industrious, ambitious and frugal. Over the past thirty years, much of that has been shredded… The country’s moral guardians are forever looking out for decadence out of Hollywood and reality TV. But the most rampant decadence today is financial decadence, the trampling of decent norms about how to use and harness money. ” by ohn B Introduction to Enough By John Bogle Founder, The Vanguard Funds 26

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“The idea that economic crises, like the current financial and housing crisis, are mainly caused by changing thought patterns goes against standard economic thinking. But the current crisis bears witness to the role of such changes in thinking. It was caused precisely by our changing confidence, temptations, envy, resentment, and illusions—and especially by changing stories about the nature of the economy. ” Animal Spirits 28

The Credit Crisis & Great Recession “The word credit derives from the Latin credo, meaning ‘I believe. ’” Animal Spirits By Ackerloff & Schiller 29

A#2: And history suggests we can! “The business cycle is a psychological phenomenon. Only when the memory of hard times has dimmed can confidence fully establish itself; only when confidence has led to outrageous excess can it be checked. It was as difficult for Mr. Hoover to stop the psychological pendulum on the downswing as it had been for the Reserve Board to stop it on the upswing. ” Fredrick Lewis Allen Editor of Harper’s Magazine Explaining the Great Depression 30

“The 1929 breakdown was at its roots, a moral breakdown. We were not living right. We had become extravagant. We had become intoxicated by the alluring notion that the royal road to riches did not lie through sweat but speculation. We discarded and scorned old-fashioned virtues. ” B. C. Forbes Founder, Forbes Magazine 31

“The sins of Big Business and High Finance were responsible for the over-whelming voting of the New Deal into power. Therefore, any and every act calculated to bring business into disrepute is infinitely regrettable. ” Forbes Magazine July 1, 1944 32

“In the latest USA TODAY/Gallup Poll, Americans are fed up with Washington and convinced by more than 3 to 1 that the nation is heading in the wrong direction. ” USA Today February 16, 2010 33

Miserable +13% Source: The Economist 34

“The wealth of a nation is not to be found by asking a statistically significant, random sample of people to have a stab at it. What people think, still less what they say, is not a good guide to the way the world is. People don’t know. ” The Economist 35

Angry 36

Source: The Economist 37

WSJ, September 15, 2010 38

“The problem with the tax debate is not that Democrats and Republicans disagree, but that they mostly agree. Democrats think 98% of Americans should not pay higher taxes; the Republicans say 100% should not. Taxes this year will come to less than 15% of GDP, the lowest share since 1950… Raising taxes on the rich would lift the ratio to only 20%. That is nowhere near enough to pay for federal spending, estimated at 24% of GDP in 2020. ” The Economist September 18, 2010 39

Source: Perotcharts. com 40

And Depressed 41

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“It’s very interesting to me that the spread of communications has increased the misery of people…we’re flooded with bad news. And this bad news is making people depressed at a time when prosperity is at its greatest ever. ” Sir John M. Templeton 43

“There has always been something in human nature which makes you buy a newspaper which has the most horrible headline. Therefore, to be successful in the publishing or television business, you have to feed the public these catastrophes or the negative viewpoint. Therefore the public is brainwashed. ” Sir John Templeton 44

“The agenda of the world-the issues and items that fill our newspapers and newscasts-is an agenda of fear and power. A huge network of anxious questions surrounds us and begins to guide many, if not most, of our daily decisions. Clearly those who pose these questions which bind us have true power over us. Jesus seldom accepted the questions posed to him. He exposed them as coming from the house of fear. They did not belong in the house of God. ” Henri Nouwen 45

“Politicians earn much of their living by exploiting anxieties, encouraging people to feel worse than they should about the state of their country. ” The Economist 46

“The whole aim of practical politics is to keep the populace alarmed—and hence clamorous to be led to safety—by menacing it with an endless series of hobgloblins, all of them imaginary. ” H. L. Mencken 47

“Few men have virtue to withstand the highest bidder. ” George Washington 48

Proving some things are indeed eternal, a prominent politician has said: “Our government in Washington now is a horrible bureaucratic mess. It is disorganized, wasteful, has no purpose, and its policies—when they exist—are incomprehensible or devised by special interest groups with little or no regard for the welfare of the average American citizen. The American people believe that we ought to control our government. On the other hand, we’ve seen our government controlling us. ” Governor Jimmy Carter 1976, Dow Jones Apx 800 49

“No matter how serene today may be, tomorrow is always uncertain. Don’t let that reality spook you. Throughout my lifetime, politicians and pundits have constantly moaned about terrifying problems facing America. Yet our citizens now live an astonishing six times better than when I was born. The prophets of doom have overlooked the all-important factor that is certain: Human potential is far from exhausted and the American system for unleashing that potential remains alive and effective. ” Warren Buffett Letter to shareholders 2011 50

“The deficit is not a meaningless figure, only a grossly overrated one…Our politicians have conjured the deficit into a bogeyman with which to scare themselves. In symbolizing the bankruptcy of our political process, the deficit has become a great national myth with enormous power. But behind the political symbol, we need to understand the economic reality, or lack of it. In the advanced economic literature, the big debate is whether deficits matter at all. ” Robert Bartley Editor The Wall Street Journal Seven Fat Years, 1992 51

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“When Americans look at their economy these days, they are horrified by what they see, or think they see. Economic paranoia has become an American habit. America worries as it prospers. ” The Economist Sam, The Paranoid Man 54

Extraordinary Popular Delusions & The Madness of Crowds “‘This time is different’ are the four most expensive words in the English language. ” Sir John M. Templeton 55

Counting Our Assets, Or Blessings, For A Change www. whitehouse. gov/omb/2010 budget 56

A B C D 57

America’s Wealth $125. 5 Trillion Gross (A) -7. 2 Trillion Owed (B) =$118. 3 Trillion Net (C) Source: OMB, White House 58

“The size of the net foreign debt is relatively small compared with the total stock of U. S. assets (D). In 2007, it amounted to 7% of total assets including education and R&D capital. ” Office of Management & Budget The Bush White House Budget of the U. S. Government Fiscal Year 2009 59

America’s Federal Debt to Assets Source: OMB in Bush White House 60