A Christian Response
to the 2007-11
Financial Crisis
by dave hoyt
An Unwelcome Intruder
The recent financial Crisis hit America and many nations with a devastating blow. Most agree we entered the worst recession since the worldwide ‘Great Depression’. The rippling effect impacted investors, business and property owners, corporations and lending institutions with ferocity – destroying years of stability. Huge sums of retirement money disappeared, financial institutions and businesses crumbled and a steady stream of home foreclosures began. How did this all happen?
The collapse occurred in a setting of complex interdependence of insurance and lending institutions, banks, investment and mortgage companies and financial forecasters. Trade imbalances, regulatory deficiencies, high corporate and consumer debt were equal contributors. In hindsight we’ve learned that the regulatory and market-based leadership did not effectively protect our financial system, or measure the build-up of potentially explosive risk.Prior to the financial crisis that began in 2007, ‘very little was off the table regarding financial risk manipulations’ which had gradually been embraced as acceptable practices within many companies.1
Greed, deceit and the intentional avoidance of accountability was the disastrous and lethal combination that drove this financial train-wreck. Nailing down those responsible has been near impossible due to the expansive questionable practices imbedded within so many corporate institutions. CEO’s and ranking top executives of companies that were culpable to some degree have remained stoic, denied wrong-doing and have thus far avoided incriminating themselves or the companies they represent. Regardless, the public at large knows that ‘white-collar crime’ has risen to new heights by inflicting a national and global crisis.2
' Money-making at almost any cost’ remains a persistent draw and norm in the corporate, business and banking world. ‘Greed’ with all its unethical practices is not going to retreat quietly, though exposed for the selfish and ruthless tyrant it is. It is we, who must decide how we are going to relate to this ‘manipulative guru’ and its stronghold in our world.
Many world citizens and Christians still believe inhonesty, integrity, have moral beliefs about right and wrong and seek to apply these convictions in life choices. We don’t want to embrace greed, deception, or dishonesty to exploit fellow Americans, or those in the world community. Doing so would be the moral equivalent of us being an upstream neighbor who pours toxic chemicals into the river our down-stream neighbors drink and live from. Greed is a terrible taskmaster, causing good people to do bad things – and bad people to do despicable things.
Fall-Out / Player Audacity
The thirst for more money and things is never satisfied, until we chose to refuse to let greed control and define us! Those complicit in the recent Wall Street scandal should be gravely concerned about the harm they’ve caused. Are they? The results of this crisis are devastating and demoralizing. Small and large companies have folded, good jobs are harder to find, and Americans by the millions have lost homes, employment and retirement savings!
Turning to the book of Proverbs in the Bible we hear these words. “The wicked person earns deceptive wages” 11:18. “A wicked man accepts a bribe in secret to pervert the course of justice” 17:23. “He who oppresses the poor to increase his wealth – and who gives gifts to the rich – both will come to poverty” (Prov. 22:16 NIV).
PARABLE OF A MIDDLE INCOME FAMILY
A Home, Job, & a Baseball Glove
“A wealthy family lives in an expansive beautiful seven bedroom home with a son ten years old– whose been given everything he needs, or wants. The dad works for ‘Security Mortgage Company’ which offers home mortgages; buys, sells, and trades mortgages as well. Their family property is expansive. On nine acres they have three horses and a large stable for expansion; a golf putting green, a huge swimming pool and adjacent Jacuzzi. Between mom and dad they own five cars with a large detached garage with ample room to park them and a separate wing to store other stuff. Part of the wing is dedicated to their son – with all kinds of cool recreational things for him and his friends. He has a four- wheeler, 2 go-carts, bicycles, sports equipment- a soccer ball, basketball, football and plenty of baseballs, bats and gloves; archery equipment, a ping-pong table, fuse-ball table, and a collection of dirt bikes. The family also owns two vacation homes.
Next door is a middle income family who has a son about the same age. He loves baseball and takes pride in a baseball glove he saved for with his newspaper bike-route money. He purchased a Rawlings glove and carefully broke it in by oiling, shaping and frequent use. He plays Little League for the ‘Kiwanis Club’ team. Recently he was chosen ‘captain’ because of his good attitude and encouraging words to his team-mates.
One day his wealthy neighbor’s son asks if he could borrow his mitt– saying he had an important ball game the next day, promising he would return it. It was a difficult choice, but in good-faith he loaned his prize glove. Several days later, when he hadn’t heard back, he asked for the glove. The wealthy boy said he’d lost it. He didn’t really lose it, but hid the mitt in a corner of his large garage. He liked the glove because it was broke in and better than his other expensive gloves. He didn’t offer to replace the glove.
The wealthy father had set up the mortgage on the middle income family’s home with a balloon payment and a hike in payment fees that were due after the third year. The company did this with many loans, knowing they would most likely default when the balloon payment and higher monthly payments kicked in. The cure – sell off the mortgages quickly to other companies! Three years had elapsed and the middle class family couldn’t make the balloon payment of $ 8,500 and the larger monthly mortgage payment. They lost their small two-bedroom home and it slipped into foreclosure. The son never saw his baseball glove again. The family lost their first home and the husband lost his job when his company folded in the recession and they had to file for bankruptcy. They moved to an apartment to start over again.” What happened here?
The wealthy family had everything they wanted. The husband’s company gave him bonuses for risky but successful mortgage deals which made him rich. When he set up the mortgage for his neighbor, he knew it would most likely fail – but it wouldn’t affect his bonus. He wasn’t surprised to hear his neighbor’s home went into foreclose– knowing it was inevitable. His son never planned on returning the baseball glove he stole – he just wanted the glove. His dad had taught him ‘don’t sweat the small stuff’. The wealthy boy’s thought was, ‘It was his loss for being dumb enough to lend me the mitt’. Both father and son were hoping for richer neighbors with the ‘For Sale’ sign up.
I knew a very wealthy Christian man whose greatest joy was giving financially to help others in need. He championed many causes, supported a host of organizations and one day was the major contributor in the purchase of a large medical vessel that sailed to many ports in poorer nations providing free medical and dental treatment. The ship also had a large selection of free educational resources and literature in the languages of the people they visited.
The opposite is the person who allows money and riches to dominate them. Greed and amassing wealth are strong forces in our present world. Obtaining a good job and earning a reasonable living is a necessity. Those who are rich can earn their wealth ethically, treating people fairly, giving employees good wages, benefits and practicing honesty and generosity. Or, they can misuse their status of wealth by exploiting their workers; being heartless, deceptive and manipulative – forging dishonest schemes and business deals that serve but one purpose: to feed ‘the evil monster of greed’. An honest person is the back-bone of a community and nation. A dishonest person causes many to lose confidence.
Look Out!
Jesus said, “Watch out! Be on guard against all kinds of greed; a man’s life does not consist in the abundance of his possessions” (Luke 12:15 NIV Bible). He reminds us – Everything we own could vanish – along with our life, at any moment. What then? The only place of safety is, to be rich toward God. (Luke 12:21b) “Woe to you who are rich, for you have already received your comfort” (Luke 6:24 NIV Bible).
Jesus tells a story about a rich man and sick and diseased man. One had everything materially– the other had great needs. When death came to both, the tables were turned. The diseased man was honored by God, while the rich and greedy man found himself in a tormented environment in hell. The entire story and conclusion is found in Luke 16:19-31.
Corruption in local and national government –business, education, law enforcement, the military, sports, or in the private sector has Americans and world citizens disillusioned. We hoped for better. We don’t like being used, so greed can have its selfish way at our expense. We don’t appreciate being lied to and deceived by countrymen and women who assume we are not smart enough to figure out who is responsible when out-of- the- blue we begin losing our homes, jobs, medical insurance, life-savings, and the reasonable quality of life we worked hard to achieve.
“A fortune made by a lying tongue is a fleeting vapor and deadly snare.” Proverbs 21:6.
To a man of great wealth which controlled him – Jesus said, “How hard it is for the rich to enter the kingdom of God! Indeed, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God” (Luke 18:24-25).
HOW THEN, SHOULD WE LIVE?
A good starting point is perspective; “What do you have, that you did not receive?” (I Corinthians 4:7b) The gift of life, breath, all that we are and everything we’ve been given came from somewhere. Some think it’s by chance, others recognize a ‘higher power’, while many remain unsure.
I give appreciation to the ‘True and Living God’ – who set order and beauty into our world and universe. The words of the prophet Jeremiah are comprehensive when stating, “God made the earth by his power; he founded the world by his wisdom and stretched out the heavens by his understanding.” (Jeremiah 10:12 the Bible) King David emphasizes the personal miracle we’ve each experienced. “For you created my inmost being; you knit me together in my mother’s womb. I praise you because I am fearfully and wonderfully made; your works are wonderful, I know that full well” (Psalm 138:13-14).
Consider: Don’t let the love of money become your god. James and Paul give additional insight and warnings of the dead-end of this pursuit. (I Timothy 6:6-10 & James 5:1-6 The Bible) Be honest in what you do. Practice generosity regularly.
Jesus taught, “It is more blessed to give than receive.” (Acts 20:35b) Avoid self-absorption! Hold onto what you own—loosely. Reflect on your temporary journey in this world. What can you give of yourself that’s healthy to enrich another’s life? What positive legacy will you leave for your family, community and world?
In the song, ‘Three Wooden Crosses’ part of the chorus addresses this subject with these words, “I guess it’s not what you take, when you leave this world behind you –it’s what you leave behind you – when you go.” [3] These lyrics emphasize we will leave something behind – whether good, or bad. Our deeds, the way we lived, our mistakes, the corrections we’ve made, our faith, hope and love, or the absence of these. What will you leave behind?
Those that live a selfish greed-driven life, hoard, are dishonest, refuse to share, or practice an ungodly life will receive a judgment for this behavior. What they leave behind will be a bad example and memory in the minds of others. Their life will have been wasted, used up on the wrong things – and they will take none of their money or possessions with them, not one tiny trinket from this world! And they will be lost for eternity, separated from all that is good. Don’t be misguided and found among them.
“What good is it for a man to gain the whole world, and lose or forfeit his very self?” Jesus Christ – (Luke 9:25)
Endnotes:
1 Thomas, Bill / Hennessey, Keith / Holtz-Ekin , Douglas– 10 Factors in the Wall Street Crisis, Wall
Street Journal, 2011
2 Wikipedia Encyclopedia – Causes of Financial Crisis 2007-2010, Subprime Mortgage Crisis –2011
3 Williams, Kim / Johnson, Doug – Three Wooden Crosses, Sony / AVT Music Publishing, Warner/
Chappell Music 2002
Dave Hoyt and his wife of thirty-four years, Ginny – reside in Albuquerque, New Mexico. He grew up in Los Angeles, has lived in different parts of the USA and abroad. In search of truth he sojourned in eastern religions and esoteric teachings –until through prayer, God reached out to him and revealed Jesus Christ. As street kid, Jesus freak, seminary graduate, youth pastor, pastor and institution chaplain of twenty-five years to troubled teens – he’s seen and experiencing the good, bad and ugly. As a follower of Jesus he’s personally encountered ‘the dark night of the soul’ – finding God’s mercy more than adequate. Enjoying reading, research and writing he’s committed to applying his faith to everyday life by loving his neighbor and conveying truth that is insightful. Is there a blurring of lines regarding good and evil? It is with deep conviction that he’s undertaken writing about this subject.
Blessings and Peace in Jesus Christ,
dave hoyt, dhoyt777@comcast.net
