Christian Response to Financial Crisis

By Steve Strang

I've never seen anything like the financial crisis that has hit Wall Street and our nation in the last month. If you're like me, you have investments for your retirement, and you feel helpless to know what to do. Probably the worst action to take would be to sell everything because history has proven that the economy will probably rebound.

Last Sunday I had the privilege of visiting Abba's House (Central Baptist Church) near Chattanooga, Tennessee, pastored by Dr. Ron Phillips. During the service Phillips introduced his pastor of stewardship, Alan Johnston, who has a very impressive financial background and is an expert in what's happening on the stock market.

Johnston shared with the congregation that the worst thing that can happen is for people to react out of fear. You can see for yourself what he said by clicking on the link to the video below.

View Video

Below I share some thoughts and financial insights from Michael Cozakas, who is a part of Apostle C. Peter Wagner's network and the founder of Eagle's Heart Ministries. I have shared his comments with several people, and they felt it would be good information to pass along.

Meanwhile, click on the ad below announcing a conference call with Larry Bates, one of our authors who wrote a book several years ago titled The New Economic Disorder. I will report more about his book in a future Strang Report.

Long before President Franklin D. Roosevelt, in his 1933 inaugural address, said in reference to the depressed economic condition of our nation, "The only thing we have to fear is fear itself," God Himself had given us the admonition not to fear. He said through the prophet Isaiah, "'Fear not, for I have redeemed you. …When you pass through the waters, I will be with you; and through the rivers, they shall not overflow you. When you walk through the fire, you shall not be burned, nor shall the flame scorch you. … Since you were precious in My sight, you have been honored, and I have loved you'" (Is. 43:2-4, NKJV).

Johnston says that historically there have been 10 cycles during which the stock market has fallen even more than it has this month. Each time it does, there is usually a reason. This time it is the credit crunch and the banking failures that have recently taken place. However, the government has stepped in to stabilize things, and it's probably just a matter of time before things return to normal.

As Johnston shared with the congregation at Abba's House, we should continue in faith, continue our giving and look to the Lord, who is our real source, not the stocks we own or the economy in the country in which we live.

I urge you to forward this video by Alan Johnston to as many people as possible. We must get the word out. In order to understand the times in which we're living, we must learn to discern them, as the sons of Issachar did (see 1 Chron. 12:32), and view them in light of the Word of God.

Please leave your thoughts on the blog.

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The Economic Bailout
By Michael Cozakas

October 2008

I was in Norway during the most recent economic events that have caused such a stir throughout the world. I heard people tell me that the U.S. financial markets were collapsing and unprecedented losses would occur. When I realized the nature of the problem I reflected on what was causing this catastrophic event to occur.

What Happened?

First and foremost, I believe this is a godly correction and it is a good thing for our economy. The mortgage meltdown, which has caused most of this, was brought on by some greedy people [who] departed from sound economic practices. The bankers that caused this put many people into mortgages that they could not afford or qualify for. They convinced people that if they purchased homes beyond their earning capability they would realize an increase in their quality of living.

The bankers developed mortgage packages with artificially low interest rates that made the loan payments for the first few years affordable and easy to make. No one ever looked past the initial rate as the people were told that they could always refinance, and they really should move up and enjoy their new lifestyle. To make the problem worse, the bankers then released loan packages called "stated income loans" that had no income verification. These loans were given to borrowers based on what they said they earned. It is, and has been, common banking practice to verify everything a borrower states so that people are held accountable to their word.

Many people were convinced by the bankers, the mortgage companies, and the mortgage processors, that they should get the home of their dreams and take full advantage of the American dream. As we all know, these practices moved the banking community away from good stewardship principles, and they were motivated by their greed.

As the loans came due, and the market conditions changed, their dream homes become a curse. Because they were living well beyond their means, they suffered through foreclosures, bankruptcies and personal financial devastation. This caused the mortgage meltdown to occur, which affected our old and stable financial institutions; thereby creating the current economic conditions. Suffice it to say, there was nothing godly in anything our financial institutions did. Praise the Lord, He brought about a correction.

Most of us understand good stewardship, and most of us understand when something is not right. We all are given a moral compass. As these events occur, which will shape our life for generations, we need to see that God is in this so we all have real hope that this is moving by the hand of God for our good.

The Bailout

Interestingly enough, while I believe God caused this, I can also see God's grace at work here. When I first heard that our elected officials were faced with approving a 700 billion dollar economic bailout to help our financial institutions survive, I was relieved that our government was actually going to do something to help—then I quickly realized that the taxpayer base would pay it back. The number is so large, it will affect us and our children. This cannot be good, and why should we help financial institutions that strayed away from sound banking practices? They caused the problem; they should suffer through the chaos as this is righteous.

History

Shortly after that, I read an article that said this is not the first time that the U.S. government has bailed out the economy. In fact, this is the fourth time, and every time the government has bailed out the economy the people eventually prospered.

The first time this occurred, the economic bailout was suggested by and administered by Alexander Hamilton. The government purchased properties, held on to them, and then sold them for a profit; thereby replenishing the treasury. We know Alexander Hamilton to be a man of God and this was his idea. In a time of crisis, we work together for the good of the country where we live.

The last time this occurred was during the '80s when the S&L [savings and loan] meltdown occurred. A similar set of circumstances happened, and our government stepped in and bailed out the problem. The government formed a company that held the properties and then they were sold at a profit. The money was repaid at a profit for the people.

When I started to see the truth of this, I realized that while God drove a correction that was needed, He also opened a door that, based on history, could actually profit the people in time. While I don't believe our financial institutions deserve anything, I do believe that we should seize the hope that God has given us. I also believe that this is a great time of fear for the country. The media has learned that people pay more attention to it when the news is bad, so the media has learned to play on our fears.

Faith, Hope and Trust

This is a time for the body of Christ to hold onto our faith and trust the Lord and His ways. I know that through faith and trust, we will overcome this and our character in Christ will grow more day by day. I also believe that those people who have no relationship with the Lord will be driven to seek Him and find their faith. The old adage that says there are no atheists in a foxhole tells us that in a time of crisis the people seek their God. I believe more people will be driven to the church and more people will find their God.

As believers, it is our responsibility to let people see the Spirit of the Lord that abides in us. We must show our faith as we go through these difficult times. As people around us walk in fear, we can walk in faith and keep our peace, joy and righteousness. When people see the character of Christ in us by the way we conduct ourselves in this time of crisis, they will ask the questions that will truly lead them to their God.

I think this is an incredible time of faith and restoration for all people. This is a time when God is gathering the faithful to lead the unfaithful to a place of peace. We are not in a time of catastrophic doom—so don't let the media rob you of your faith!

We are in a time of great change, but we all know that great change is required and we all know that God is committed to our growth. Don't let the enemy rob you of your hope. Let your faith and trust in the Lord our God grow day by day as we work together to build His Kingdom.

Michael Cozakas
COO, ICWBF
3941 Park Dr. Suite 20-293
El Dorado Hills, CA 95762
E-mail: Michael@icwbf.com
www.eaglesheart.org

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