Biblical Insight on the Present Financial Crisis

Proverbs 11:14a-15: "For lack of guidance a nation falls . . . . He who puts up security for another will surely suffer, but whoever refuses to strike hands in pledge is safe."
Proverbs 13:11a: "Dishonest money dwindles away . . . "
Proverbs 20:23: "The LORD detests differing weights, and dishonest scales do not please him."
Proverbs 11:28: "Whoever trusts in his riches will fall, but the righteous will thrive like a green leaf."

The last few weeks have been quite unsettling for most of us who have retirement accounts in investments tied to the declining stock market. For many of us who have been told by countless financial experts that we need to provide a hedge against inflation for our retirement income by investing in the market, we feel now as if we have been fed a great lie. We feel used to the point that many of us are considering pulling the money out of the market and putting it to good use as stuffing in our mattresses (pardon the hyperbolic sarcasm).

It is true that a man who "gathers money little by little makes it grow" (Proverbs 13:11); however, this Biblical truth is predicated upon stable, reliable return environments. Although the stock market has been propagated as a safe investment haven over an extended period of time, the recent mortgage debacle with the unethical practices by businesses and government officials alike have made Wall Street look more like a Vegas casino. Returns are quite unpredictable, and one now is quite unlikely to see positive returns . . . . even in the long run.

Concerning the bad credit practices, it seems as if the lending institutions were compelled by the federal government several decades earlier to provide mortgages to those who otherwise may not have the ability to repay their financial obligations. Whereas the government may have had a spirit of altruism in its legislation of that day to provide more people opportunity to obtain credit; in effect, this dictate was in clear violation to the truth found in Proverbs 11:15. Striking a pledge with one who is not able to repay his debts will lead to more financial burdens in the end. We are now reaping the consequences of such governmental mandates.

Of course, the banks are not immune from culpability in this situation either. Rather than expressing consternation at the political pressure from the government, lending institutions looked for ways to profit from such unwise business practices. More and more financial products were packaged for would be investors to gain from such transactions, and this behavior was coupled with the unethical accounting practices of businesses that fooled investors into believing everything was financially sound at their corporations when nothing could be further from the truth. Proverbs 13 & 20 mentioned above talk about the ephemeral nature of money gained dishonestly. Because the Lord hates those who "cook the books" for dishonest gain, in the end that profit is lost.

Of course, the unethical, deceptive practices of the government and Wall Street have bred within our nation a suspicion as to the integrity of these institutions. Many of us are uncertain if those who are handling our savings can now be trusted. Tragically, our hesitancy to trust the markets likely will have dire consequences for the economy for years to come.

If there is one thing that we need to remember through these dark financial days, it is not to put too much faith in economic prosperity. Proverbs 11:28 tells us that those who put their ultimate allegiance in material wealth will in the end fall. What we must remember is that those who put their trust in God and respond with surrender to Him as Lord will find that they are able to thrive . . . irrespective of the market conditions. Now, what I am not saying is that if you put your faith in the Lord then you will see positive returns in your retirement portfolio. Still, the one who puts his trust in the Lord will experience God's provision of peace and blessing, no matter what happens to the market.

Hopefully we as a nation will learn much from such despicable economic practices. My hope is that our nation will return to the Lord and see His Sovereign hand of blessing that we once enjoyed but have since lost.