Saturday, March 22, 2008

Recession, Repentance and Remission

Right now 'recession' is the word on the street. There are two words that are no less important but get far less press: repentance and remission. As I have quoted Lesslie Newbigin elsewhere:
". . . Increased production has become an end in itself; products are designed to become rapidly obsolete so as to make room for more production; a minority is ceaselessly urged to multiply its wants in order to keep the process going while the majority lacks the basic necessities for existence; and the whole ecosystem upon which human life depends is threatened with destruction. Growth is for the sake of growth and is not determined by any overarching social purpose. And that, of course, is an exact account of the phenomenon which, when it occurs in the human body, is called cancer." (Foolishness to the Greeks p114, emphasis mine)
We are entering a time of recession because our growth has been cancerous. This is a mercy if we will receive it with repentance. God may even see fit to put our cancerous growth into remission if we will repent.

True repentance requires not just limiting our spending, but changing our entire trajectory. It is not merely about limiting unsustainable production, but radically altering the purposes for which we produce. Furthermore, there can be no genuine repentance without reference to the One whom we have offended. As Christians in our time, the desperate need is to exemplify and call for repentance that has Christ as its center of reference - rather than the environment, or industry, or anything else.

In order for this repentance to occur, we must transgress the public/private divide that says that religious language does not belong in public dialogue. This is part of our repentance, the claim that Christ's authority is not limited to those who confess Him, but is over all of humanity. I know no other way to begin this call than through humble, prayerful study of the Scriptures, and faithful, consistent action in the world. God grant us repentance!

Tuesday, March 18, 2008

House of Cards

Over the past week or so, all eyes have been on Bear Stearns, as it suffered from a "run on the investment bank." It came down on the basis, as I have heard, of rumors. If I am not mistaken, other investment banks are in much the same position. By the very nature of their business, they are not liquid, and so a "run on the bank" puts them into crisis - and either bankruptcy or buyout.

When I look at it, I am astounded by how many other industries are built around investment banking. Many real estate and service industries exist to support the investment banking industry, and a great many others derive secondary revenue from that industry. So if one bank can disappear in the course of a week, the effects will necessarily be wider than the investment banking industry.

The point is that the financial markets, with investment banking as a very important element, are a house of cards. They rise and fall on investor optimism and pessimism, and their fall will have consequences far beyond the financial markets.