DownshoreDrift

Where Will It End?

Washington has now racked up a $5 TRILLION tab trying to rescue us out of our financial struggles. It seems that no amount is too high to ensure our continued prosperity.

Meanwhile, I recently learned that for only $10 Billion, every man, woman, and child on the planet could have clean drinking water. Polluted drinking water is the leading cause of death in undeveloped countries. 4500 children per day die of diseases linked to polluted drinking water. That's over 1.6 million per year, which is more than the number of children that are murdered from abortion each year in our country.

The price of our prosperity is too high. Children all over the world die while we do little. Yet, we spend trillions to ensure the prosperity of our own economy so that we can consume more. On average, Americans spend $450 billion on Christmas every year. Only $10 billion would give clean drinking water to the whole world. I'm normally really wordy, but I'll let you wrestle with the implications of what we are doing as a nation.  I just want to cry.

By the way, consider giving water for Christmas. Find out how HERE. You can also help our organization, Community Development Initiatives (CDI) provide clean drinking water in Northern India through our Himalayan Clean Water Project (HCWP).  Leave a comment or send me an email if you are interested.

Prophetic vs. Political: Thoughts on the Day After Obama's Election

President Obama. I'm still trying to get used to saying those words. I didn't support him, but now that he is president, I will give him my respect and prayers as he engages the very difficult task of leading our nation. I had an interesting talk with my kids as I took them to school this morning. They asked me why Obama's election was so historic. I was able to explain to them that just a few years ago, it would have been impossible for a black man to be elected president. They didn't understand, so I told them about the evils of racism and how white people behaved in ways that were not pleasing to God. That is changing, and for that I am glad. In many ways, America is a better place today because we are putting aside race as a determining factor in how we treat people. I still believe that the Church can lead the way on this, but I am glad to see America moving on from past sins. In a strange way, America engaged in national repentance last night for over 300 years of wrong. If our eyes are closed, we will miss what is happening.  UPDATE:  My friend Andrew sent me a link to a really interesting CNN article talking about the racial healing that is taking place in America with Obama's victory. Some of the interviews take place in my city of Montgomery, Alabama. Check it out.

As I said in my previous post, I am not worried about a liberal Democrat becoming president. I do not agree with many of Obama's policies, but I trust that God is in control. I choose to look to Him. As I watched the news coverage last night, I heard news anchors who were almost in tears because of their joy. I saw people dancing in the streets and I DID see many people in tears. A lot of people in America now have a great deal of hope that things are going to be better. I understood the emotion from African Americans, and to an extent, I understood why Obama supporters were so happy. Even though I understand, I am struck with the folly of putting our faith in men. I hope that Obama is a good president, but no matter how well he governs, he is just a man. Men fail and disappoint us. It seems that we struggle to learn that lesson.

Along those same lines, I hope that evangelical Christians have learned that the Republican Party is not our hope. It is now fractured, inept, and very sad. They lost their way and we didn't even have enough moral strength to affect the party that we had lashed our hopes to, must lest affect the nation. Something in me says that evangelicals have lost their way as well. Most younger evangelicals that I know have long given up on the Republican Party, seeing it for what it is. The issue of abortion has kept us in the fold up till now, but after years of Republican presidents, a majority in Congress, and 7 out of 9 Supreme Court justices being appointed by Republicans, many understand that if Republicans were going to do something about abortion, they would have done so. We have to get back to changing hearts and minds and that only happens when people have an encounter with God. Unfortunately, our close ties with Republicans have caused many to see evangelicals in a political way, instead of as people overcome by the power of the gospel. We should be involved in politics, but we should do so in a prophetic, transformative way.

A.W. Tozer said, "It is impossible to keep our moral practices sound . . . while our idea of God is erroneous and inadequate."

Rick Warren has said, "What you believe about God determines your happiness, your direction . . . and ever facet of your life."

It appears that our view of God has diminished a great deal and we are bearing the fruit of that. We see God in a consumeristic way, as though He is there primarily to meet our needs. Salvation becomes all about us. Our spiritual life becomes all about us. Church participation becomes all about us. God becomes a means to our own personal happiness. It is not surprising that we view politics, government, the economy, our relationships, our jobs, and our marriages the same way. So, how will things change? We must be salt and light and value God and His glory above everything else. If we will live from that point and lash our hope to Him, then we are free to change and engage the world prophetically. There are a lot of positives that could come from an Obama presidency. Let's make sure that we, as the people of God, act as a blessing to this nation we say we love during this incredibly pivotal time. Let us rejoice with those who rejoice because for many, this election signals a new America - one that they have spent their lives praying for.  If we fail to understand that we will not be able to communicate with people from other perspectives. The gospel remains the issue. Let's not diminish a hearing for the gospel over politics.  

Prophetic vs. Political: A Kingdom Perspective on the Election

At the end of Life Group last night, the guy leading the gathering reminded us to pray for the election and to see God's hand at work in it no matter what happens. I completely agree. Romans 13:1-2 says, "Everyone must submit himself to the governing authorities, for there is no authority except that which God has established. The authorities that exist have been established by God. Consequently, he who rebels against the authority is rebelling against what God has instituted, and those who do so will bring judgment on themselves."  No matter who wins tomorrow, there will be some disappointed people. We have to remember to pray for whoever becomes president and to give honor due the office.

In the 1990's, many conservative, Evangelical Christians acted shamefully, in my opinion, when it came to Bill Clinton. There were constant snide remarks, jokes, and insults. Many acted hatefully no matter what he did, it was wrong. At the same time, many of those same people have given George W. Bush a free pass on everything, whether his actions were right or wrong. Bush was their guy and Clinton was not. But, this perspective causes us to miss the truth and be easily deceived. We have to quit playing "team" politics and learn to side with Truth instead of our perspective on things.

When I awake Wednesday morning, I will be full of joy no matter who wins. I will not be in despair, heartbroken, or angry. I will not fear.  I will be full of joy because I know that God is on His throne and He is not surprised. His will will be done no matter who is in the White House. He will use the next president to accomplish His purposes. Maybe great things will happen? Maybe we will receive judgment from the Lord and be turned over to our sins?  Who knows?  But, I do know that I will be looking to God instead of Washington - in Him will my hope rest.

At the end of the day, I praise God for America and I love my country deeply. I want to see her be all that she can be and to fulfill the promise of her founding. But, I am a citizen of God's Kingdom first of all and it matters far more how I conduct myself as His ambassador in this alien land, than it does who is in the White House. Do I weep over the murder of the unborn? Absolutely. This election motivates me to be more active in doing something about it and not just trust politicians to pass laws. That is the easy way out and requires little on my part. We must BE Christians, even in the midst of a hostile environment, instead of trusting government to make life easy for us. If that awareness arises out of this election, then may God be praised and may His Kingdom come!

By the way . . . don't forget to vote! 

Prophetic vs. Political: Declaring My Political Independence

I am taking a huge political step this election season and am deciding to break with my lifelong allegiance to the Republican Party. I am voting for neither McCain nor Obama. Since I was a child, I have been a staunch Republican. Reagan was elected when I was six years old and I vividly remember his "Evil Empire" speech regarding the Soviet Union. Even though I was 6 or 7, I remember his charts with the number of ICBM's that Russia had compared to the number that we had. I was a big Reagan fan and still am. George H.W. Bush seemed to fumble Reagan's legacy a bit and Bob Dole was not a good candidate. Still, I voted for the Republicans in 1992 (my first election at the age of 18) and in 1996. I even worked on a campaign for a local Republican candidate when I was in high school. He lost, but I remember the excitement that I had the night of the election at the campaign headquarters. In 2000 and 2004, I voted for George W. Bush and have been severely disappointed. I remain a staunch social and economic conservative, but I can no longer say that the Republican Party represents the future that I want for America. Their vision is gone and after years of bowing to big business, deregulating almost everything, and waging unending war at the behest of the neo-conservatives, they have run far afield from the Republican Party of my youth. 

So, where do I go? The Democratic Party is NOT the answer for me. Their views on big government, abortion, and other social issues run counter to my beliefs. But, I am tired of party politics altogether. I find that both parties care more about power and the special interests that give them money than they do about representing the American people and doing what is best for our country. We have major challenges facing us economically, militarily, socially, and in regard to our foreign policy. The immigration issue has been forgotten about, Social Security reform will not happen until all the money is gone, our national debt now tops $10 trillion with over $1 trillion expected next year, and both parties have shown that they have no desire to cut spending and balance our budget. Education is getting worse instead of better, health care for middle class families remains a huge issue, and America continues to play at empire all around the world, but our commitments far outweigh our ability to meet them. I have not seen anything in any party that tells me that they have the courage or desire to actually address the problems that face us. If these issues are not addressed, the nation that we grew up in will not exist for our children and our decline will be a fait accompli.

As a Christian and a pastor, I do believe that we should be involved in politics. Politics are only the means by which humans organize their societies, their tribes, and their countries. Christians SHOULD be involved in that so that we can be salt and light in a broken world. I believe that God has given us answers as to how we should live that apply to all people, whether they are Christian or not. "Love your neighbor" is a concept that applies to all people. Caring for the poor, honesty, integrity, hard work, morality, personal responsibility, and the sanctity of human life and the inherent worth and dignity of all people are all concepts that come from the Bible. The principles, along with many others, apply to all people and can be represented in our government. What if Christians stepped away from party politics? It seems that evangelical Christians have sided with Republicans because of a few issues and mainline Christians have sided with the Democrats. What if we tried to advocate a biblical view on issues and called BOTH parties to righteous action on the issues that confront us? What if the Church was neutral when it came to political parties and we affirmed righteousness no matter which party presented it? What if we opposed unrighteousness when it was presented by either party? It seems that we cheer for our team and we refuse to hold them accountable when they do not do right because we are afraid that we will lose access to power. In doing this, we show that we are bound by the kingdoms of this world and we have lost our prophetic voice. We do not belong to this world - our citizenship is in a heavenly Kingdom and we are called to be ambassadors of Christ. Isn't it time that we started living like it? 

What type of affect would this have on the political process? What if millions of Christians refused to be led along by party allegiance and instead forced BOTH parties to do what is right starting with just the values that were commonly accepted like the ones listed above? People would see a clearer picture of what the Church is actually supposed to be and we would be free to be Christians first and Americans second, rather than dividing over party allegiances. Political parties primarily exist as an apparatus to gain power. What if we forsook worldly power and embraced and held up truth, no matter the cost? How would we affect things locally, in our states, and in national politics? I think that we would be shocked as to what affect this would have. It is completely different from the world system and it is the only real chance that we have for transformation of the political process.

So, this year I declare my political independence so that I can express my whole dependence upon Jesus Christ. I am done playing the power games. Instead of feeling that I am throwing away my vote, I actually value it more now than ever. As an American, our vote is the most fundamental thing that we have to speak out on how we feel our country should be run. I actually feel that I am saying something this year instead of just falling for the same old song and dance that gets run out every four years so people can gain power to do what they want. Our nation is in trouble and until the American people begin to recognize that what we are doing is not working, things will only get worse. I think that Christians have a role to play in that and I am happy to begin playing that role this year. 

In case you are wondering, I don't know who I am voting for yet. I am still looking at third party candidates and I might write someone in - someone that I think would be a great leader but they are not in the process - yet. Winning is not the point. Being prophetic is and when I stand before God, I hope to have represented Him with everything that I have rather than just have been on the winning side here on earth.  I might just enjoy this. Let's see where political independence takes me!   

When Will We Address Our Greed Problem?

The Church remains largely silent about the economic problems of our day. Why is that? Alan Greenspan in his report to Congress yesterday admitted the fallacy of deregulation and expressed shock that banks took on risky loans and did not protect their shareholders.  It seems that CEO's with $20 million salaries and golden parachutes weren't really concerned about their shareholders. I'm shocked. The truth is, some regulation is good. It is the role of government to constrain the wickedness that comes from our sinful natures. Romans 13:1-5 tells us that God has put government in place to direct the affairs of men. Not all government is good, and too much government regulation and taxation does affect our freedom and prosperity. But, the absence of regulation also shows us that the human heart, unrestrained, will engage in more and more evil. In this case, greed is destroying us.

Of course, this greed does not just take place in the financial sector. Consumers also want more and more. I believe that this is one of the greatest spiritual problems of our day. We are desperately trying to fill a void within us and we have bought into the lie that bigger is better and that the more we have, the happier we are. The truth is, only God satisfies, but we seem to have forgotten that. I am not saying that we cannot ever have big houses or nice things. Those things are not inherently wrong necessarily. But, so many of us are living beyond our means to chase after an illusion. Contentment escapes us.

Let's look at house sizes for an example. The American Dream involves home ownership, among other things. Well, we have taken home ownership to a new level. Apparently, as families have gotten smaller in America houses have gotten bigger. New homes are 239% larger now than they were in the 1950's. 239%.  Families have dropped from 3.1 people per family to 2.6 since 1974, the year I was born. Why do we need all of this house?  A very interesting article from 2006 told us that people thought that it was their right, they NEEDED this much space, they were looking for privacy, and they wanted to have their own private space. Was all of this good? With the collapse of the housing market, what will happen to all of these huge homes?

Owning a home is a wonderful thing - or, it can be. My point is that we never seem to be satisfied. We want bigger and more all the time. Our appetites are unrestrained. America is 4% of the population and consume 25% of the world's resources. Our prosperity is built upon our appetites. If all of this prosperity had led us to become more generous, then it would be put to good use. But, that is not the case either. Recent reports are telling us that Christians are giving less and less each year to their churches. Maybe that is because churches spend the money on themselves as well (it has been said that over 90% of all the money given by Christians is spent on themselves). 

• Americans spent nearly twice as much on first-day sales of the video game “Grand Theft Auto IV” as the Southern Baptist Convention and its International Mission Board would need to share the gospel with all the world’s unreached people groups by 2010, according to a new report on church giving.
• The total portion of per capita income given to churches in 2006 was lower (in 2006) than in the worst year of the Great Depression (this was a year of great prosperity).
• it would cost each U.S. church member just 8 cents a day to help reach the U.N.’s Millennium Development Goal of cutting infant mortality by two-thirds by 2015

The financial crisis that we are in reflects a major moral crisis in our nation. We have put money and things ahead of God and people and. But, the Church says nothing because we have bought into the same lifestyle that is producing the problems that we see. We have even altered the gospel of Jesus Christ into the "prosperity gospel" so that we can go to church to learn how to become rich and keep feeding our insatiable desires.

Something tells me that this is what judgment looks like. We need to repent. But, if the Church does not call people to repentance, then what hope do we have? 

 

Money Markets Have Completely Broken Down: World Hopes For Renewed Bailout Plan, Prepares for Economic Disaster

I am writing about this because I believe that we as Christians need to be equipped to have the proper persective on an economic crisis that affects us all.  Bloomberg is reporting that bank-to-bank lending has basically ceased as the money markets have seized up. Why does this matter? Because if banks are not loaning money to one another, they surely won't be loaning money to us. It has basically become impossible to get a loan.

"This is unheard of, the money markets should be the engine driving the financial system but they have broken down,'' said Kornelius Purps, a fixed-income strategist in Munich for UniCredit Markets and Investment Banking, a unit of Italy's largest lender. ``Any institution that hasn't completed its 2008 funding needs by now is going to be in very serious trouble. More banks are going to need to be bailed out."

``The money markets have completely broken down, with no trading taking place at all,'' said Christoph Rieger, a fixed- income strategist at Dresdner Kleinwort in Frankfurt. ``There is no market any more. Central banks are the only providers of cash to the market, no-one else is lending.''

Here is what the world is saying about what is happening:

Glenn Beck from CNN.com has some very sobering thoughts about the economic disaster that we are currently facing. He actually predicted it earlier in the year:

In the weeks following that DEFCONOMY column, I moved from thinking this meltdown scenario was a frightening possibility to realizing it was a near inevitability.

While it took the people in power far too long to recognize it, they are now understanding the same sad truth. This bailout plan is not a good idea -- it's an absolutely terrible idea. It's just the only idea we have left.

Our financial system is like a 747 flying around with all four of our engines on fire. The bailout effort will not stop us from landing hard, but without it, we may simply drop out of the sky. iReport.com: Will a bailout save us?

What Congress is attempting is a last-second search for an open field to land this plane with as little damage as possible. With that in mind, I think some kind of action may be a necessary evil, but we must be very, very careful.

Action for the sake of action, much like change for the sake of change, doesn't solve problems. It usually inflames them. And what's worse is that it creates brand-new catastrophes we haven't even considered yet. Wall Street and Congress have been playing with fire, and now it's Main Street that's beginning to sweat.

Edmund Conway, the Economics Editor for the London Telegraph issues dire warnings when he says, Corporate America lost a chunk of it's value the size of the Indian economy:

In one fell swoop, the House of Representatives has applied a sledgehammer to the American economy. The staggering plunge in the value of publicly quoted stocks in the US last night - a $1.2 trillion fall - shows more clearly than anything else just how much it had been holding out for a financial bail-out.

Even so, the longer you stare at a screen of the Dow Jones or FTSE 100, the more abstract it seems. So this is what it means:

It means millions more Americans, and hundreds of thousands more Britons, will lose their jobs; it means the recession will be deeper and more protracted than previously feared; it means borrowing costs will increase on both sides of the Atlantic. Companies will cut back on investment. Pension funds will be depleted.

The Western world, in short, will become significantly less wealthy.

The Wall Street Jounal tells us that Congress has lived up to its 10% approval rating. Apparently, Speaker Pelosi could have gotten the bill passed if she had wanted to, but she chose to play politics and blame the Republicans. Nice.

America has survived a feckless political class in the past, and it will again after this week. But Monday's crash and burn of the Paulson plan on Capitol Hill reveals a Washington elite that has earned every bit of the disdain that Americans have for it. This crowd can't even make sausage.

The 228-205 defeat reflects badly on all concerned, starting with the Democrats who run the House. The majority party is responsible for assembling a majority vote, and Speaker Nancy Pelosi failed in that fundamental task.

Her highly partisan speech on the floor -- blaming "right-wing ideology of anything goes, no supervision, no discipline, no regulation" for the financial distress -- is no excuse for Republicans to vote no. But it is indicative of the way she has governed for the past two years -- like Tom DeLay without the charm. The cynics are saying Ms. Pelosi deliberately tanked the bill by giving 95 Democrats a pass, knowing failure would hurt John McCain, and given her track record we can see why people would believe it.

Pat Buchanan tells us that we are facing the end of the American Empire. He makes some really good points here:

"Government must save us!" cries the left, as ever. Yet, who got us into this mess if not the government -- the Fed with its easy money, Bush with his profligate spending, and Congress and the SEC by liberating Wall Street and failing to step in and stop the drunken orgy?

For years, we Americans have spent more than we earned. We save nothing. Credit card debt, consumer debt, auto debt, mortgage debt, corporate debt -- all are at record levels. And with pensions and savings being wiped out, much of that debt will never be repaid.

Our standard of living is inevitably going to fall. For foreigners will not forever buy our bonds or lend us more money if they rightly fear that they will be paid back, if at all, in cheaper dollars.

We are going to have to learn to live again without our means.

The party's over

So, what does all of this mean for us?

It appears that we are headed for very difficult times. Here is what I would suggest:

• After talking with some folks who know, I would suggest that if you have money in the markets (401k, mutual funds, etc.), that you stick with it for now. If you sell now, you are just taking a loss. Things will likely rebound at some point and there is no point in just losing money, especially if you are young. The 4th Quarter of every presidential election year in modern history has seen the markets rebound.  A bailout plan is forthcoming and markets will likely rebound accordingly.
• Get out of debt.  Credit Card debt could be the next bubble to burst and interest rates could rise a great deal. If possible, it is best to be flexible and not tied to bad debt.
• Cash is the way to go. If you can have cash on hand in case of bank runs, that is a good idea.
• Now is not the time to be buying a house or making any big purchases. You likely cannot get financng anyway.

For Churches

• It would be a good idea to make sure that you don't have more than $100,000 in any one bank. You have a fiduciary responsibility to protect the tithes and offerings of your people as best you can by making sure that your deposits are protected by the FDIC limit of $100,000 per account.
• Many churches are engaging in budget discussions for 2009. Now is the time for frugality. If we are facing a recession, that means that YOUR people will lose jobs, not get raises, and see their finances tighten. Unfortunately, that means that offerings will dip. How can you prepare your church to weather this storm? What can be cut? How can you continue to carry out the mission as cheaply and as efficiently as possible? 
• How can you minister to people who are struggling with fear as they see their financial situation deteriorate? How do you help them when they lose jobs and don't know what the future holds? We must connect people to their sure foundation, Jesus Christ. We must look to the Lord. This is great time for us to display confidence in God and to witness that confidence to others who are in fear.
• This is also a great time to teach about a biblical view of finances and to call people away from the idols of materialism and consumerism. I would not do so in a condemning way because we all succumb to it just because we are American, but this might be a time when people are listening and are looking for another way to live. Let's show them the way that God has for us.

God is at work here. He is calling people to Himself. He is in control and the only that we can do is place our faith in Him and choose not to worry (Matthew 6:25-34; Philippians 4:6,7) We should pray instead of fear, though the earth give way and the mountains fall into the heart of the sea. Our hope is in the Lord and He is the only One who can save us. As the gods of money and consumerism fail, our God never fails. It does not mean that we will not suffer, but it does mean that God saves. We cannot control what happens, but we can control how we respond to it. Pressure reveals what is inside of us and it reveals what we place our hope in. Let's proclaim the message that "God is our refuge and strength, an ever present help in trouble" during these extremely difficult times and love America enough to point her to the God who can restore her and make all things new.

God Is Not Surprised: Thoughts on the Financial Collapse and Other Crises

As the events of today have unfolded, I have had a lot of thoughts. The House did not pass the $700 Billion bail out bill, sending stocks into a 770 point free fall. Wachovia (my bank) went down today as it was bought out by CitiGroup.  I praise God that we did end up selling our house on Friday, as it appears that selling a house is going to become a much more difficult proposition. I have come to the conclusion that future home ownership is not for me, and it appears that I am not the only one who feels that way.  On top of it all, there is not much gas in the Southeast after the destruction of Hurricane Ike on Galveston, TX (God bless those people) a few weeks ago. Ugh.

What a mess. Long term, I think that it is a good thing that the bailout bill failed. We were making a move to socialism and it would kill us in the long run. But, a lot of people are losing a lot of money in the meantime. It seems that we want to guarantee prosperity for the present, no matter what the cost to our future. The policies of the Clinton and Bush Administrations, in conjunction with the greed of Wall Street and the incompetence of Congress (both Republicans AND Democrats) have led us into economic disaster.  I've been reading about this for a couple of weeks now, and it is still hard to make heads or tails of it, but basically it seems that the cost of our lavish American spending spree has come due and no one wants to pay it. We have built our financial house on sand and now that the winds and waves have come, it appears that we are not going to stand.

Instead of providing leadership, politicians and political pundits are pointing fingers and blaming one another. There is no leadership. Both Obama and McCain are hopeless and appear to be trying to make political points in the midst of all of this. Nancy Pelosi and House leadership is beyond comical and President Bush continues to flail around. At the end of the day, I am left with a complete lack of confidence in our politicians who appear to only care about their own power.

What does this mean for churches? Obviously, our trust is in the Lord, but it is foolish to think that a massive economic downturn is not going to affect churches and the ministries that we engage in. People only have so much money. It is not just non-Christians who are in debt up to their eyeballs and who bought houses that they cannot afford. Many believers have been affected as well. A great deal of older Americans who have their wealth tied up in their homes and their mutual funds are going to be hurting a great deal. It seems that now is the time for frugality and wise financial management amongst our institutional churches. The projections that I am reading concerning the future are almost apocalyptic.

We do know this: God is not surprised. Eventually, we know that everything that can be shaken will be shaken and only God's Kingdom, which cannot be shaken, will remain. Have we built our house on the rock of faith in Christ or on the sand of our own desires? Our hope is not in the markets, our home values, politics, the government (either Republicans or Democrats), or our military. Our hope must be in the Lord. Maybe these events will cause us to turn away from placing our hope in acquiring the American Dream. Maybe we will look to God and recognize that He is our Source of Life. Some have bought into the myths of our culture and have made a lot of financial mistakes. Once lessons have been learned, now is not the time to point fingers. But, it is the time for each one of us to make sure that our utter dependence is only upon God.

All of this might get worse instead of better. I don't know where it is headed, but I do know that we live in a country that is not prepared for suffering. A lot of people are having their foundations shaken. May we be a witness to Christ during this turbulent time.

UPDATE: My friend, Joe Kennedy, just left a comment on this post refering me to Bob Roberts' thoughts on the debacle that our nation is in: The Changeless Inner Core. I agree with him completely. We are in a mess and it will be a long time until we come out of it.  "The American Dream is in foreclosure."  I think that he is right.

Is It the End of the World As We Know It?

That scenario was being put forward by Spiegel, the German newspaper yesterday amidst the second day this week of over 400 point losses in the NYSE.  "Nothing will be like it was before," said James Allroy, a broker who was brooding over his chai latte at a Starbucks on Wall Street. "The world as we know it is going down."  Apparently, Morgan Stanley, one of the last of the great Wall St. investment banks is looking for a buyer.  Some are saying that we are headed for another Great Depression. Then today, the market rebounds over 400 points and traders are jubilant because the Federal Government is "thinking" about setting up an entity to absorb the bad debt of the banks.  Maybe I have this wrong, but it sounds like traders are happy because the mistakes that the banks made will basically be absorbed so that they can get back to business and not be saddled by the bad debt that they have taken on. Someone correct me if I'm wrong.

Spiegel said this just this morning,

But what's really happening? Experts have so far been unable to agree on any conclusions. Is this the beginning of the end? Or is it just a painful, but normal cycle correcting the excesses of recent years? Does responsibility lie with the ratings agencies, which have been overvaluing financial institutions for a long time? Or did dubious short sellers manipulate stock prices -- after all, they were suspected of having caused the last stock market crisis in July.

The only thing that is certain is that the era of the unbridled free-market economy in the US has passed -- at least for now. The near nationalization of AIG, America's largest insurance company, with an $85 billion cash infusion -- a bill footed by taxpayers -- was a staggering move. The sum is three times as high as the guarantee provided by the Federal Reserve when Bear Stearns was sold to JPMorgan Chase in March.

The most breathtaking aspect about this week's crisis, though, is that the life raft -- which Washington had only previously used to bail out the mortgage giants Fannie Mae and Freddie Mac -- is being handed out by a government whose party usually fights against any form of government intervention. The policy is anchored in its party platform.

"I fear the government has passed the point of no return," financial historian Ron Chernow told the New York Times. "We have the irony of a free-market administration doing things that the most liberal Democratic administration would never have been doing in its wildest dreams."

So, we basically have the nationalization of insurance companies and financial institutions, in addition to Freddie Mac and Fannie Mae, all paid for by Federal money (that's money that comes from taxpayers like us, by the way).  Is this the beginning of the end of capitalism, or at least the curtailing of it? Under the free market, the individuals acting in the market promote what works and what is helpful. Bad business decisions meet failure and something better comes along and takes its place. The market guided by Adam Smith's "Invisible Hand" makes the decision and things ultimately work out. We have long maintained that markets performed best (and provided the most long term prosperity) when they were not controlled by the government or central planning. Are we now moving in that direction because it is too painful to allow some of these institutions that have made horrible financial mistakes (influenced by greed and a lust for short-term gain) to fail and take our economy down with us?  It seems that we believe more in comfort and short-term profit than we do in our own financial system.

This has been the problem all along. "Get what you can while you can" is what has led us into this mess. We have not been building a national economy of any strength for the past 30-40 years. We outsource jobs because it is better for the bottom line of multinational companies and because Americans want cheap goods from overseas. We don't care that our manufacturing and skilled labor is leaving our country - we have to feed our consumptive appetites. We borrow against the future without concern as to how we will ever pay it back. Now, the government is telling our investment banks, mortgage lenders, insurance companies, and brokerage houses that they do not have to pay it back - the American taxpayer will. So, all of the people who have blown it get a mulligan and we have to foot the bill because the cost for the American economy would be too large a price to pay. I guess that I'd be happy to pay a little more in taxes to keep from losing my job and having the economy fall apart - because that effects all of us - but it just puts us into a deeper whole. The problem is that if we keep paying more in taxes, more jobs leave, prices go up, and eventually, we are left without the ability to create wealth.

It appears that we are headed for very tough times. Combine this with the aging Baby Boomers, the impending Social Security/Medicare crisis, high gas prices, the ongoing War on Terror, unbridled immigration, a national debt approaching $10 Trillion, etc., and it appears that the chickens have come home to roost, so to speak. Unless this is just a blip or correction (like the supposed oil shortages that were causing price increases - that was actually caused by speculators in the commodities markets - again, greed), we are facing times like we have not seen in almost 80 years.

How will this affect the American family? What is the role of the Church in such a situation? At what point do we begin to publically and prophetically speak against the love of money that is destroying our country and actively promote a Biblical ethic in regard to buiding our nation? We say that we love America, do not stop and say "Enough!" when it comes to these issues. Are we not training Christians to be active in guiding the marketplace? Or, does the Christianity of some succumb to the bottom line?  We cannot continue to be 5% of the world's population and consume 30% of it's goods and resources without some plan as to how we can pay for all this consumption in the long term - and a corresponding plan to strengthen what remains.

Capitalism is a good system (the best we've come up with), but there needs to be a moral compass within the people to govern our appetites and cause us to live within our means. People are sinful and will act selfishly. Adam Smith's Invisible Hand stated that selfishness was basically good because everything would work out in the end for everyone's benefit. Unfortunately, selfishness at a macro level where speculators and the titans of finance are able to affect things far beyond Smith's wildest imagination is not good.  Our moral compass is gone and it is destroying us all. The American Church, especially the Evangelical Church, has done a good job of calling attention to our moral laxity and the sins like abortion, homosexuality, sexual promiscuity, etc. that have plagued us. But, it appears that our moral breakdown has also destroyed our ability to govern our resources and to make sound financial decisions. We should give some attention to this area as well. Apparently, greed is just as dangerous as the Bible says it is.

Who says character doesn't matter?  When it comes to sound financial principles, it appears that character IS the bottom line.  It seems like God is smarter than us, doesn't it?

The Gods of Greed: Collapsing American Banking System?

How bad is this going to get? 504 points down for the NYSE. Lehman Brothers (which started in Montgomery, AL in 1844, by the way) - bankrupt. Fannie Mae and Freddie Mac - taken over the by the Feds. Merrill Lynch - emergency buyout by Bank of America. AIG, the world's largest insurer is on the brink of collapse. As I wrote last week in an absolutely brilliant essay (no, really, it was brilliant - okay, I'm kidding), greed and the unadulterated drive for consumption is what led us into the housing crisis. It appears that the banks were leading the way as they engaged in risky loans and financial dealings that are now tearing their foundations apart. This is really sad.

My degree in college was in social studies education, which means that I am qualified to teach high school economics. Basically, that doesn't mean a whole lot, except that I am interested in the subject and I know the difference between supply and demand. That curiosity basically just keeps me reading and learning about the issue enough to be a little dangerous. But, I found a really fascinating article on what went down on Wall St. last weekend. It reads like a novel, or a Hollywood movie. Apparently, Bernanke, the Fed Chairman, along with Henry Paulson, the U.S. Treasury Secretary, brought in the heads of all the major banks in the U.S. to see who wanted to buy out Lehman Brothers. When the Fed said that there would be no government bail out this time, everyone passed and Lehman Brothers went bankrupt. It is an amazing story and if you want to see just how little control the barons of Wall St., or the Masters of the Universe as novelist Tom Wolfe called them in The Bonfire of the Vanities, actually have over what happens, I encourage you to read it.

Do we get our identity from our homes, our wealth, and our standard of living? Jesus says that if we build our house on sand, the wind and waves that are inevitably coming will wash over it and tear it apart. But, if we hear His words and put them into practice, then we are building our house on the rock and when the winds and waves come, the house will stand (Matt. 7:24-27). Jesus tells us not to love money. He says that it is hard for rich men to enter heaven. Rich men tend to put their faith in their riches and they are always scrambling to get more. Instead of acquiring more for ourselves, the Bible tells us to be generous and to spend ourselves on behalf of the hungry (Isaiah 58). As my friend Strider said in a comment on the other post, the average American home is now 2200 sq. ft., as opposed to 1600 sq. ft. several years ago. This has happened at the same time that our families have gotten smaller. What do we need all of this for? Is it worth it, or are we just trying to fill a gigantic hole in our collective soul?

Our economy is in shambles and no one really knows the way out. Our national debt is at $10 trillion. We are facing a banking crisis like we have not seen in 70 years, all because we thought that we could just buy and spend forever. We have bought into a lie and it is killing us. The truth is that God is the only One who can satisfy us. Bigger homes, more money, and more powerful jobs do little to provide us with meaning and hope. The Church of Jesus Christ should be the ones most loudly proclaiming the message that when we make material things our god, we are sure to be destroyed. But, we've largely been silent on this issue because we have often been pursuing the same things. I am not exempt, either.

The prophetic issues of our day - the areas that God can really shine through - are often lost to Christians because we so closely follow our culture. We go right along with the things that our world says are important. It is often not until things fall apart that we are able to say that God is enough.  Perhaps God will use this to turn our hearts to Him. May all of us who call upon the Lord have the wisdom to place our faith in Him in these uncertain economic times and not fear.  God is enough.

I don't know how bad all of this is going to get, but I know that no matter what happens, God is not surprised. He saw all of this coming when we were all counting the imaginary money that our homes were accruing in the real estate bubble. He is still God and He is still enough. If we will look to Him and not let our hearts be troubled, we might even be able to minister to others as their worlds are rocked and they struggle with fear and uncertainty. Good things can come out of this if we look to the Lord.      

Causes of the Housing Crisis: Greed and the American Dream

There is no way that I can write this post without having people come on and try and correct me for not seeing the full picture, but, I'm going to try anyway. I am surprised to not see much commentary from the Church/Christians on the burgeoning housing/mortgage crisis that is so severely affecting our nation. Actually, I am not very surprised because we don't do very well at attaching moral significance to national problems unless it involves abortion, Hollywood, or gay marriage. But, our nation is facing a severe moral collapse in more ways than one and the root cause of it is greed. Colossians 3:5 says that greed is idolatry, and it is placed on the same level as sexual sins.  In our pursuit of the so-called American Dream, we have gone after false gods and we are paying the price for it. Jesus contradicts the current consumeristic version of the American Dream when he tells us not to store up for ourselves treasures on earth and that we cannot love both money (material possessions) and God at the same time. If we love money, we hate God (Matthew 6:19-24). Ouch. Is that message being proclaimed in the American Church? How does it relate to the housing crisis?

Many have said that the housing crisis has been caused by greed. I understand that there were many factors including a directive from the Bush Administration in 2002 to get lower income people into home ownership any way possible. People who could not afford the homes that they wanted were allowed to purchase them anyway with adjustable rate mortgages that ended up increasing to the point that people could not make their payments any longer. Also, with the increase in housing prices, many people borrowed against their increased equity in the form of second mortgages and used that money on consumer spending. When the housing market fell, their homes were not worth what they were and they were left with the debt. The Economist tells us

Relative to their incomes, consumers have been taking on more debt for decades, as America's increasingly sophisticated financial system allows more people more access to credit. But the pace of indebtedness has accelerated dramatically. The ratio of household debt to disposable income is now above 130%. Earlier this decade it was 100%; in the early 1990s it was 80%.

I saw a Discover Card commercial the other day that said, "We are a nation of consumers, and there's nothing wrong with that." It goes on to tell us that the problem is that there is just so much cool stuff out there, but then, it promises to help us with our debt so that we can spend smarter and save money, ultimately getting out of debt so that life can be more fun.

I appreciate their desire to help the American consumer, but another credit card is not going to help us. The problem is that we ARE a nation of consumers. Our identity is now built on what material possessions we have, the house we live in, how we dress, and how we look. President Bush told us to spend the money that they sent back to us in tax rebates instead of saving it, paying off debt, or giving it away. Our economy only works if we are all spending more than what we make and because of that and other reasons, it has become an immoral economy. Yet, we keep the ball rolling.

There have been many Christian ministries that have arisen to help people get out of debt and live within their means. But, the shortcoming of these ministries is that the basic issue of greed is often not addressed - or, if it is addressed, people often do not get the message. From Home Improvement shows on HGTV, to the rash of people trying to flip houses, we have bought into the lie that we can have everything we want and become rich if we just figure out the right approach. Ultimately,  being rich has become our goal in life. Many Christians have used the solid principles proclaimed by the financial ministries as a means to get out of debt, build wealth, and live the good life as defined by the pursuit and acquisition of material gain. Again, greed is often the driving force here.

Over the past decade, we have had two financial bubbles burst: Tech stocks in the late 90's and the housing bubble from 2006-2008. Both are symptomatic of the masses trying to get rich quick. But, Jesus gives us a different goal. In Matthew 6:33 he tells us to "Seek first his Kingdom and his righteousness, and all these things will be given you as well." We are told to not worry about tomorrow, about what we will eat or drink, or about material possessions (Matt. 6:25-34). Instead, we are to seek God first. Jesus does not say that there is anything wrong with wealth and there are wealthy people who are blessed by God. But, the point is that we are not to seek after wealth. We are to seek God first. He will provide for us our needs and everything will fall into its proper perspective.

How much have we gone along with the prevailing culture here? How discerning have we been? I know that I have not always seen things correctly in this area. I have been caught up in a consumer mentality, and as long as I stayed away from the big sins that we all know about, I have felt like I was doing pretty well. But, the sins of greed and pursuit of material gain are just as insidious and destructive. It takes our focus off of God and puts it on material possessions. It causes us to get our worth and value not from our Creator, but from things. It is idolatry and it is something that we must war against.

The housing crisis illustrated by the Federal Government's recent bail out of Freddie Mac and Fannie Mae to the tune of a possible liability of $200 billion for taxpayers is illustrative of the judgment that we are bringing on ourselves. How long can this continue?  Can the Church be a prophetic voice to our nation on this issue? The Bible speaks directly to what is happening and gives us the solution. Perhaps our evangelism should address the idolatries and sin issues of our day in calling people to repentance and the ultimate wholeness that comes from submitting to Christ. Jesus forgives and cleanses us from the sins of greed that are destroying us. Maybe America needs to hear that from our leaders just like they are hearing about the other things that we talk about so much.

I wonder if we don't talk about greed and the full-blown pursuit of the "good life" because we know that we, ourselves, are eaten up with it.   Jesus, save us.