Bail Out of the Bail Out!

Well, it's time to weigh in on the economic bail out down in the states. I'm not going to pretend that I even begin to understand everything that is taking place, but the one thing that stands out to me is we're in an economic spin cycle the likes of which Maytag would be proud of. Down in the U.S. there are companies that are circling the proverbial drain and the U.S. govt. is proposing to throw more money into the downward spiraling economy in order to keep jobs afloat, save said companies and keep the economy from going under. We're spinning round and round and round and no one has any idea how to plug the drain and stop the whirlpool. All the while the common people are getting more nauseated than a 10 year old forever twirling in circles on the Mad Hatters Tea Party ride at Disneyland.

I've listened to both sides of the economic bailout debate and there are people far better versed in discussing this than I am. It seems to me, though, that the last thing you want to do is charge the same people who caused this mess with fixing it. I just read a blog by Mark Baker on the peoplesweeklybrief@hotmail.com. In his blog Baker notes that Robert Rubin has been working as an economic advisor to President Elect Obama. Maybe Rubin's name is familiar to you, but in case not, allow me to fill you in. Back in the Clinton White House of the 90's Rubin was Secretary of the Treasury. It was under his oversight that the deregulation of Fannie Mae and Freddie Mac was put in place which has led to this mess. Yesterday I was in a meeting where Brad Willems, a Sr. Financial Planner for Assante, reminded us that it was the Clinton White House which came up with the brilliant idea that home ownership was the way to raise the standard of living for the lower classes. In other words, the U.S. govt. could raise the standard of living for the poor, or lower middle class, to middle or higher middle class if people could be helped to purchase a home. Hey, I admit, it's a noble idea, but it may just be that there's a reason people can't afford a home and maybe, while a wonderful ideal, home ownership isn't for everyone. Historically the obstacle to home ownership for many in the lower class had been poor credit, inability to make monthly mortgage payments, not enough money for a down payment, lack of jobs, or poor paying jobs, etc... The solution to this dilemma flowing down from the Clinton White House, lower the lending standards for poor, middle class, or minority buyers, thus helping them get into the housing market. The way to do that, get Fannie Mae and Freddie Mac, both govt. owned mortgage lenders, to adjust their lending practices and lower the qualifying standards for a loan. This, then, forced other private banks and institutional lenders to follow suit. That's basically the gist of what I read from Baker, and others, and heard from Brad. If I'm a little off, that's my fault, but you get the general idea.

Back to Paul Rubin, the architect in the Clinton Whilte House who oversaw the implementation of this policy. After his service as Treasury Secretary, he went to Citigroup where he became a director and senior advisor raking in some 100 million dollars while working for this organization. Um, in case you can't keep up with everything that is floating around in the bailout, this is the same Citigroup that just last week received a bucket full of cash from the govt. as part of the economic stimulus package. In what can only be described as incredible foresight on his part, Rubin left Citigroup this past August, just days before the drain stopper in the economic pool was pulled. Are you beginning to think that a lot of what is floating around in this cesspool is foul smelling? Me thinketh so! Are you also beginning to see a pattern here?

Now, President Elect Obama, with Rubin as an economic advisor, is appointing Rubin's proteges as part of his economic transition team and advisory group. The same group of people who helped navigate us into this mess are being tasked with the job of plugging the leak and stopping the cycle. There's a definition for insanity in there somewhere.

This blog isn't just about looking at and re-reporting current events. First and foremost, it is about responding from a biblical world view to the events and challenges facing us. So, allow me to offer a biblical perspective to the above. 1 Timothy 6:6-19 makes it very clear that what you do with money can destroy you (vs.9) or make you (vs. 19). Verse 10 is very well known to most Christians, "... the love of money is a root of all kinds of evil." I like the way John Piper paraphrases this passage in his book, Desiring God, "The root of evil is that we are the kind of people who settle for the love of money instead of the love of God!" It would seem to me that if the current economic crises shows us anything it is we spend a lot of time and energy worrying about money, striving for riches, hanging onto and protecting what we have, but in the end it isn't going to matter. In the blink of an eye it can all be gone, or in the blink of an eye we can be gone and, as Paul reminds Timothy, we can't take it with us! If I can paraphrase this passage for our economic times into one simple statement, it would be, "No matter whether the market is flush or whether it is circling the drain, God is always better than gold!" There is, according to Paul, great gain in godliness with contentment (vs. 8) So, what does it gain you and me to have it all and to risk loosing our souls? America today, and I would put Canada on the periphery of this category, is a save yourself society. The problem is it doesn't work. We're never going to truly be able to hold onto everything we have, our lives included. Instead, Paul is urging us to lay hold of eternity. No one, secular, believer, or otherwise, wants destruction, ruin, or worry. Everyone wants to lay hold of life. Therefore, test yourself. What attitudes do you have during these tough economic times? Is your confidence in your RRSPs, bank accounts, or stock portfolio? If so, then listening to the news reports will have you believing we're circling the economic drain and you'll be ready to throw yourself down the drain with everything else. Or, is your attitude that it's all God's anyway and I'm merely the conduit through which God is going to let money flow for his purposes? One attitude leads towards worry. The other leads towards contentment in the face of circling drains.