Looking At the Foreclosure Crisis from a Christian View Point

The housing crisis has led to the humbling of the American economy. It is time to look at the foreclosure crisis from the Christian point of view. Invariably parallels are being drawn with the Great Depression but the foreclosure crisis of today holds little similarity with it.

Capitalism is not at stake and the foundations of the American economy continue to remain strong even during the current raging foreclosure crisis. In 1933 when Roosevelt took over charge there was a real crisis and the economy had collapsed. Most of the banks had shut down the entire nation was without business.

Although nothing similar to it is happening now, it is undeniable that the foreclosure crisis has shown that the financial infrastructure requires to be more realistic. For this reforms are required. To do so the ingredients are inflow of new ideas, a committed working class, strong demand by consumers, huge quantities of natural resources and unbridled intellectual power.

The foreclosure crisis is mainly about the excessive valuation of property. Inflated assessment led to risky financial steps. As the market began to correct itself the sub-prime melted down to the foreclosure crisis and evictions. Across the globe the markets had accepted the increased valuation as real. Based on this, brisk risky trading was indulged in on the assumption that this game could never come to an end. It was a fool’s paradise.

Other causes were also at play. The dollar began to slide as oil prices increased against the background of an economy that began to be more knowledge based in these days of technology.

Greed also played a part. Adam Smith had given one of the best explanations about the economy in his The Wealth of Nations. He said that the economy is about exchange of goods and services from one person to another. Each side must believe that something will be gained by doing so. Since the whole thing cannot be worked out through individuals, an economic network is necessary. The trading is done through currency exchange based upon a certain value that has been agreed upon. Wanting to gain something out of a deal is not really greed. It is the fundamental motivation for an economy to run. The Bible is quite clear on this point that the worker must be worthy of being hired and that he should be rewarded for his labour. Thrift and investment are other Biblical virtues. If the anticipated gains are unrealistic then it is greed. This is one of the major causes for the foreclosure crisis.

Related Posts

• The Crux Of The Foreclosure Problem Is The Yawning Gap In Income
• Foreclosure Housing Woes Related To Greed and Not Race
• Foreclosures In USA Affects Global Economy
• The Homeowners Are Querulous About Being Bailed Out from Foreclosure Trouble
• The Feds Take Measures to Allow Free Credit Flow to Prevent Further Foreclosures