Put your money where your heart is, and live your conscious with your finances.
Christians often have a conflicted relationship with money. On one hand, Paul was a tentmaker who supported himself in ministry, and he tells Timothy that “a man who fails to care for his family is worse than an infidel (1 Timothy 5:8).” Many saints in the Bible were wealthy, from Abraham to Joseph of Arimathea, and they used their wealth to further the Kingdom of God.
Simultaneously, the Bible speaks often of money, and warns repeatedly against pursuing wealth. Paul says, “the love of money is the root of all sorts of evil (1 Timothy 6:9-10).” Agur advises “Remove far from me vanity and lies: give me neither poverty nor riches; feed me with food convenient for me: Lest I be full, and deny thee, and say, Who is the LORD? or lest I be poor, and steal, and take the name of my God in vain (Proverbs 30:8-9).” Jesus Himself warns, “Then Jesus said to His disciples, “Truly I tell you, it is hard for a rich man to enter the kingdom of heaven. Again I tell you, it is easier for a camel to pass through the eye of a needle than for a rich man to enter the kingdom of God (Matthew 19:23-24).”
Continue reading “Values-Aligned Investing”
Power of all types must be diffused throughout society, because no person or entity can be trusted with too much of it.
One of the most troubling realizations during the financial meltdown of 2008 was that some companies were “too big to fail”. Chrysler and General Motors were “too big to fail” because of their strategic importance to American industry and because of the thousands of jobs that would be lost if they collapsed. So they received billions in taxpayer money. Remarkably, Ford Motor Company, just as big, in the same industry, the same environment and also threatening thousands of jobs, did not need government assistance.
Big financial companies, including Bank of America, Goldman Sachs, Morgan Stanley, Merrill Lynch, Bear Sterns, Wachovia, American International Group, and others were also considered too big to fail. The fear was that if they failed, so much confidence would be lost in the financial system that markets would implode. As a result the Bush and later Obama administrations did some legal ledgermain to merge companies and sank hundreds of billions of dollars into these entities. Individual taxpayers, home owners and account holders got a shakedown. While the blame for the crisis belongs throughout our society, from greedy lenders to irresponsible borrowers, the pain hit us all, including many who never deserved it.
Continue reading “The Financial Crisis and the Concentration of Financial Power”