Congress, the Administration, the Federal Reserve, the FDIC and National Credit Union Association (NCUA) all have made actions to help the economy recover, and — perhaps even more importantly — help restore confidence in the American economic system.

“An unprecedented level of risk aversion, a sharp rise in volatility and the forced selling of securities that evolved during the past year escalated into an emotionally charged frenzy,” said Rodric C. Cummins, GuideStone Chief Investment Officer. “Never before has this generation of investors seen the combined quantity, magnitude and velocity of events unfold over such a short period of time.”

Government action seeks to restore investor confidence. After two money market mutual funds “broke the buck” — fell below a net asset value of $1 per share — the U.S. Treasury Department launched the Temporary Guarantee Program for Money Market Funds in October. GuideStone Funds Money Market Fund is among the participating Funds in the program, which protects the value of the number of shares held in a client’s account as of the close of business Sept. 19. It does not guarantee the value of any additional number of shares acquired after that date. Further, if there are fewer shares in the account in the unlikely event that fund “breaks the buck,” the Program will guarantee the value of those shares only (not the value as of September 19, 2008). The program will expire on Dec. 19, unless the Treasury acts to extend it. If a shareholder redeems all of his shares held in an account, any future investment in the fund will not be guaranteed. For more details regarding the Program, please read the Treasury's announcement and Frequently Asked Questions issued on September 29,2008.

“We do not anticipate needing to utilize the Treasury’s coverage,” said John R. Jones, chief operating officer for GuideStone Financial Resources, “however, we sought to join the program to aid in the confidence our participants continually place in GuideStone.”

While investments in GuideStone Funds mutual funds are not insured by the FDIC, or any government agency, failing banks — including the nation’s largest bank failure in Washington Mutual — and the concerns of many, caused Congress to temporarily raise the deposit insurance on bank accounts (through Dec. 31, 2009) to $250,000 from $100,000. The increase also applies to deposit accounts at credit unions insured by the National Credit Union Share Insurance Fund.

Throughout the last 24 months, the Federal Reserve has acted to lower interest rates to help grease the wheels for banks to lend, putting more money in the economy. Inflationary pressures, which had led the Fed to raise interest rates in the early part of this decade, evaporated as concern increased that the economy would contract as credit became more difficult to obtain by businesses and individuals.

Outgoing President George W. Bush — in his Oct. 20 radio address — said he remained optimistic that the country will weather this global crisis.

“Throughout our history, we have seen that when Americans are given the freedom to apply their talents and imagination, prosperity and success follow closely behind,” Bush said according to transcripts on the White House Web site. “For over two centuries, that principle has allowed our economy to overcome every obstacle it has faced. And we can all be confident that it will do so again.”

President-elect Barack H. Obama outlined a multi-pronged plan to attack the current economic malaise on his transition Web site, www.change.gov.

“There is no more important resource for changing the direction of this country and defining the ideas that will transform America than the American people,” the Web site says.