Ezekiel 7:19 reveals we are living in End Times when…
"They Will Throw Their Money Into The Streets"

As the presidential candidates McCain and Obama were debating the Iraqi war, Iran, Health Care, etc., a deafening explosion occurred—the housing bubble BURST as a loud rumbling continued. Wall Street giants began tumbling down the economic mountain. First, Bear Stearns collapsed. The rumbling grew louder with the fall of Fannie Mae and Freddie Mac, became a roar as Lehman Brothers buckled, followed by insurance giant AIG. Financial institutions that weathered the Great Depression were on the brink of collapse.

The White House built a retaining wall out of stacks of greenbacks to the tune of $700 billion dollars. In the meantime Detroit’s BIG THREE, GM, Chrysler and Ford, raised the threat of collapse to make it a full-fledged fiscal avalanche. Bush hastily diverted $350 billion of the $700 to temporarily sustain the BIG THREE. Will the retaining wall hold until newly inaugurated President Obama builds a backup retaining wall of greenbacks totaling up to a trillion dollars? Why so much? For one thing, an expectation of unemployment toping 16%. He plans to initiate a public works program that will create 3 million jobs in 2 years—rebuilding schools, highways, bridges, etc.

While we are talking about government debt, don’t forget the projected costs of the Iraqi and Afghanistan wars which some place between $3 - $4.4 trillion dollars. Where will all this money come from? Simple! The Government printing plant will be working overtime printing paper money that you and your children and their children will pay back for this greed. But there is a bright spot—hopefully, Christ’s Kingdom will be fully set up on earth by then.

Meanwhile, back in greater Detroit, the US automobile capital, the desperate economy has taken a desperate twist. "For the first time, I’m seeing guys make a conscious decision they’ll be better off in prison than in the community, homeless and hungry," said Joseph Williams of New Creations Community Outreach, which assists ex-offenders. "In prison they’ve got three hots and a cot, so they commit a crime to go back in and come out when times are better."

The Great Tribulation in Spasms

Many are haunted by the fear that our financial crisis might unwind into something like the Great Depression. When President Bush spoke at the meeting of the G20 industrial nations, Nov. 15, he warned "we may face a depression greater than the Great Depression." The world of finance is undergoing an incredible storm, inflicting the worst destruction of wealth in our history. Many knew something like this was coming—but it has turned out far worse than even the most pessimistic imagined.

The inescapable bad news is that we have been in a serious recession for over a year. But will the economy spiral to depths rivaling the ’30s? The risks are there all right—in yet unexploded financial land mines and the unprecedented debt of American families, businesses and government. Soup lines and free food lines are getting longer. Some who once volunteered to handout the food are now standing in line to receive food.

With one in ten Americans on food stamps ~ don't let Washington’s current unemployment figure of 6.7% fool you. The NY Times gave a rate of 12.5% .The McKinsey Global Institute estimates the de facto unemployment rate in the United States is 16.25%. Thus, there appears to be 25 million, not 10.1 million Americans who are no longer working or looking for work, and it will get worse before it gets better.

People are not spending—so store closures will top 200,000. In the US 11% are cutting or stopping prescriptions and 36% of the people are putting off or stopping needed healthcare. Diabetics are passing out. People hope Barack Obama is wrong when he says that getting the U.S. economy straightened out "will take longer than any of us would like — years, not months. It will get worse before it gets better." Most economists largely agree.

Yes, the bottom line could be far more calamitous than the Great Depression. The Great Tribulation (Matthew 24:21; Zephaniah 1:15-18.) prophecies speak of a total financial collapse in which only Israel will be spared (Jeremiah 30:11). However, the Scriptures liken the tribulation to "birth pangs"—spasms of trouble (1 Thessalonians 5:2,3). Just as the wars, revolutions, anarchy, etc., have come in spasms, this current economic spasm is probably a warning that the worst spasm is yet to come.

The changes we are about to undergo might alter the America we know today irrevocably. "Free market capitalism" has failed. President Bush, the determined Capitalist, became the desperate Socialist. In the bailout Bush partly nationalized American Insurance Group (AIG), the world’s largest insurer. He nationalized the mortgage giants Fannie Mae and Freddie Mac. Several financial institutions were either allowed to collapse or sold to competitors. The crisis has spared very few financial institutions.

What Happened?

The world’s leading nation, the pinnacle of free enterprise, was revealed to have major cracks in its economic foundation. Wall Street is teetering and Main Street is reeling. Detroit’s BIG THREE are on the brink of collapse, while many of the nation’s bridges and roadways aren’t far behind. Why? Greed and vested interests!

The incompetent CEOs who dominate Wall Street spend much of their time acquiring exorbitant wages and unprecedented annual bonuses. With golden parachute pensions they glide off to a luxurious retirement that is unconscionable (After all, how many opulent mansions and private golf courses does one need?) compared to the millions below the poverty level raising a family in a rags-to-rags lifestyle. James 5:1-5(NASV) contains a specific warning to those exorbitantly wealthy at the expense of the poor—"Come now, you rich, weep and howl etc."

The US housing industry was experiencing an unprecedented extended boom. In 2006 the boom showed signs of weakening. But greed and vested self-interest found a way to keep the boom booming. Wall Street introduced subprime mortgage loans. Bank or mortgage salespersons sold mortgages to prospective house buyers knowing the buyers did not have sufficient income to meet monthly mortgage payments and taxes on a conventional mortgage or knowing that the purchaser would be clobbered when variable mortgages shifted into higher interest rates.

Where were the government regulatory agencies when mortgage-lenders in spot radio and TV ads dangled 1.25% interest rates before the gullible public, knowing full well many of the buyers would default when the variable rates increased? This was "Laissez Faire Capitalism" run amuck. With a "so what, I made my commission" attitude, they sought more gullible customers.

But each bank and mortgage house only had so much money to lend. In haste, they bundled these mortgages in bulk packages and sold them to larger banks like Fannie Mae and Freddie Mac to receive money to sell more subprime mortgages. Fannie and Freddie, in turn, bundled these mortgages into larger packages and sold them at a profit to other institutions in the US or overseas. US mortgage packages were snatched by banks around the world. Every bank wanted a piece of the US housing boom pie. Finally, the gravy train stopped.

Housing Bubble Bursts

When variable mortgages shifted from low interest to high interest rates, the happy gullible homeowners were absolutely devastated. The housing market froze. House prices started to plummet and are still plummeting. The result—increased foreclosures and a market glut. Today, 15 million homes are worth less than their mortgage. As many as half of them have mortgages that exceed the home’s value by over 20 percent. The mortgages banks held were worth millions of dollars. When the bubble burst the millions became "toxic waste" pushing banks to the edge.

The emotionally strong drop the keys in the postal box and walk away. The emotionally crushed lock themselves in until the sheriff batters in the door and forces the family out on the street. If you have watched a TV news report of an eviction, it is a heart-rending sight. A father is sitting on the curb sobbing, "I failed my family…I failed my family…" while a little child is hugging him crying, "I love you daddy… I love you…." The losses will be in the trillions and may undermine all efforts to salvage our banking system.

Where did the bailout money go? Shh, it’s a secret.

With all their shady deals, failures and begging for financial help, Wall Street remains arrogant. Banks are unwilling to disclose how they’re spending the billions in aid. It’s something any bank would demand to know before handing out a loan. Where’s the money going?

But after receiving billions in aid from U.S. taxpayers, the nation’s largest banks simply refuse to discuss it. Nearly everyone questioned — including Citibank and Bank of America, two of the largest recipients of bailout money — responded with generic public relations’ statements explaining that the money was being used to strengthen balance sheets and continue making loans to ease the credit crisis.

Elizabeth Warren, the congressional watchdog appointed by Democrats, said her oversight panel will try to force the banks to say where they’ve spent the money. "It would take a lot of nerve not to give answers," but Warren said she’s surprised she even has to ask.

World Economic Crisis a Disaster to Arab Oil Nations

The collapse of the crude oil market "is putting Iran under the kind of pressure that Tehran has not endured for several years," Newsweek noted. Western leaders hope the drop in the price of crude may add enough pressure on Iran to abandon its nuclear program and help voters to defeat Iranian President Mahmoud Ahmadinejad in next June’s elections. If this happens the nuclear threat to Israel would be ended.

Iran’s inflation rate is 30%, and the government, burdened by outlays for the nuclear development program and other weapons systems, is looking at a $50 billion deficit. The mood of the public is angry. Newspaper headlines last week bannered, "What has the government done with $200 billion in oil revenues?"

Saudi Arabia, whose oil sheikhs have been wading in opulence from billions of dollars of excess money, is worried about facing its first budget deficit in six years. Deficits also are expected in Bahrain, Oman and the United Arab Emirates.

Globalization

Because of globalization most of the nations are severely hurting from the economic crisis, especially the US, Europe, China, Russia and the Arab oil nations. The greed and vested interest in each economic system is adversely affecting itself and its global partners. Regardless of their political and economic systems all are ruled by sinful man.

Few can resist the corrupting influences of wealth and power. God has given sinful man ample time and opportunity to prove his inability to rule in equity. In the "Great Tribulation," sooner or later, God will bring all Gentile governments to an end (Jeremiah 30:11), but not all people (Psalms 46: 6-10; Zephaniah 3: 8,9). Through it all, Christians will have the faith to realize "God is our refuge and strength, a very present help in trouble" (Psalms 46:1). The Lord will reward the faith of His people.

Past columns of this newsletter have dealt with the Israel/Middle East conflict, the Iranian crisis, global warming, the killing fields of Africa, the threat of China and Russia—all aspects of the Great Tribulation. These and many other facets of End-Time prophecy are dealt with in the booklet, "What is This World Coming To?" Its beautiful four-color cover will enhance its use as a reference work.

It scripturally shows how the fulfillment of End-Time prophecies will usher in the glorious thousand-year reign of Christ over the Earth. And it scripturally spells out who will enjoy the blessings of Christ’s Kingdom. Now people are being thrown out of their homes. In the Kingdom everyone will enjoy their own home without fear of eviction (Isaiah 65: 20-21). Now millions are losing their jobs. In the Kingdom there will be worldwide economic security (Micah 4:4). The opportunity for eternal life will be offered to all (Acts 15: 14-17). It also shows the very special part you could play in Christ’s Kingdom.

Click here for a free copy of the booklet “What is This World Coming To?”