Thoughts on the Economy

So the semester is over, and I'm home for Christmas. Tonight, probably for the first time since the summer, I was able to watch the news, and observe just how badly our world is falling apart. Of course the main topic of discussion was the current economic situation. Automotive companies are failing, the government is bailing out banks and businesses alike, people are loosing their jobs, and we are spiraling into what will probably become a depression.

NBC played a story about the CEO's of Freddie Mac and Fannie Mae hearing before congress. I found several aspects of the clip quite interesting. For one thing, the government is looking for someone to blame for the current financial crisis. It is true that Freddie Mac and Fannie Mae contributed to the problem by extending loans to high risk applicants. They extended these loans in the hopes of making a buck- a rather common goal among most institutions. It is also true that the government encouraged this type of loaning behavior by offering more money to banks which made more loans. But now the bubble has burst, and everyone is looking for a reason. The American people are crying out for someone's head on a platter. It doesn't matter whose head, just so long as someone can be blamed. Now it seems that the government is on witch hunt for the culprit who caused our economic decline. Big wig CEO's are easy targets right now- it's all their fault, it must be them, blame them! But is it really their fault?

I am currently reading The Grapes of Wrath by John Steinbeck. It takes place during the great depression, and so there are a few parallels between the book and the current situation. People in that dark era were searching for answers as well. They were searching for someone to blame, and easy scapegoat. They tried to blame the big land owners, the government, taxes, and labor unions. But Steinbeck made an interesting point- these things are all results, not causes. The causes are deeper, simpler, and bigger than one person or one bank or one leader. The causes of that crisis and this one are basic human greed and ignorance.

I don't think that CEOs caused a global recession. I think that the greed of the people caused them to take out loans that they could not pay, so that they could buy things they did not need. I think the greed of the banks caused them to give out loans that could not be payed back, so that they could make a buck. I think that the greed of the politicians caused them to promise legislation that would cater to the greed of the people, so that they would be re-elected. I think that it is greed that is now driving us to find a culprit, so that we will not be held accountable for our own actions.

The world and the economy are spriling out of control, but that shouldn't come as a surprise. God promised that the last days would be filled with such events. All we can do is put our trust in God, and pray for His return.