Dave Kubal's Posts

Thankfulness, A Critical Aspect of Our Intercession

Posted by Dave Kubal on October 13, 2011 at 15:46

Thankfulness is such a critical aspect of our intercession and an expression of our reliance on our Almighty God. A thankful heart releases us from the constant barrage of negative news and the depressing reality that life brings.

Psalm 100:4 says, “Enter His gates with thanksgiving and His courts with praise; give thanks to Him and praise His name.” This is to be our beginning posture. We must begin our intercession by thanking God for all that He does for us, and then moving into praising Him for the character trait that propels Him to act this way.

As you go about this season of Thanksgiving, I encourage you to challenge all those around you to move beyond the negativity of the day, enter into thanksgiving for God’s provision, and move into praise for His character.

—David Kubal, President and CEO of Intercessors for America

Psalm 95:1-6 – O Come, let us sing for joy to the LORD; Let us shout joyfully to the rock of our salvation. Let us come before His presence with thanksgiving; Let us shout joyfully to Him with psalms. For the LORD is a great God, And a great King above all gods, In whose hand are the depths of the earth; The peaks of the mountains are His also. The sea is His, for it was He who made it; And His hands formed the dry land. Come, let us worship and bow down; Let us kneel before the LORD our Maker.

The Wall and “A Matter of Inches”

Posted by Dave Kubal on August 3, 2011 at 14:12

Many times as I’m traveling on airplanes I marvel at the difference a few inches can make. Relaxing in a comfortable chair in a comfortable climate, I look out the window and realize that the temperature just inches away is below zero, the winds are 400+ MPH, and air is so thin that I would instantly plummet to my death gasping for oxygen. It’s only a matter of a few inches.

The Israelites understood this matter of inches. They went to great lengths to surround Jerusalem and other cities with walls, several inches thick. Inside the wall the Israelites found protection, safety and comfort. They knew God’s purposes were a priority. They knew they would find people who were like-minded. Outside the wall was a different story. There was no guarantee of their safety outside. It was just a matter of a few inches.

Today, we as believers in Jesus Christ are not called to remove ourselves and live behind a secluding wall, but rather to bring a wall of protection to those around us. Our battle is “against powers and principalities,” and we build a barrier against attack when we “pray in the Spirit at all times” (Eph. 6:12, 18).

This is why we have a 24/7 Prayer Wall for the nation at GetAmericaPraying.com.

Safety. Protection. God’s ways. It’s just a matter of inches.

Setting the Standard

Posted by Dave Kubal on May 5, 2011 at 11:04

“For no other foundation can anyone lay than that which is laid, which is Jesus Christ” —1 Corinthians 3:11

John Quincy Adams wrote that standards “may be ranked among the necessaries of life to every individual of human society … the knowledge of them … is among the first elements of education.”

In our newly formed country, various colonies began with different standards of weights and measures. Imagine the economic chaos and strained business relationships in a nation where a yard was never guaranteed to be the same length! It wasn’t until 1832 that we set a standard of measurement for the first time.

Our founders understood the necessity of setting standards on moral issues as well. James Madison wrote, “We’ve staked our future on our ability to follow the Ten Commandments with all of our heart.” On another occasion he wrote, “It is the mutual duty of all to practice Christian forbearance, love, and charity toward each other.”

Standards are critical, whether in commerce or in relationships. We see this theme throughout Scripture. Hannah understood this as she prayed during her dedication of Samuel, “For the Lord is a God of knowledge; and by Him actions are weighed … for the pillars of the earth are the LORD’s, and He has set the world upon them” (1 Samuel 2:3, 8). The mother of one of Israel’s greatest judges clearly understood that it is God who determines what is right and wrong.

Surrounded by a pluralistic society based heavily on tolerance, let’s intercede that solid, godly standards would be reestablished. Tolerance and apathy have left our nation with differing standards, resulting in economic chaos and relational tension. Paul wrote about this type of predicament in his letter to the Corinthians: “For no other foundation can anyone lay than that which is laid, which is Jesus Christ” (1 Corinthians 3:11). As he worked to build the Church, he understood that the Son of God, the final King of Israel, is the author of standards that existed before humankind.

As we focus our prayers this month, let’s pray that our Foundation, Jesus Christ, would be recognized. May His weights and measures, and His divine judgment, be our frame of reference and our standard for coherence.

God, Our Refuge and Fortress

Posted by Dave Kubal on April 6, 2011 at 14:00

“I will say of the LORD, ‘He is my refuge and my fortress; My God, in Him I will trust. Surely He shall deliver you from the snare of the fowler and from the perilous pestilence. He shall cover you with His feathers, and under His wings you shall take refuge; His truth shall be your shield and buckler.’” —Psalm 91:2-3

Dictators overthrown. Political turmoil. Earthquakes. Unexpected nuclear disaster. All eyes linger on Japan’s nuclear crisis as both sides of the Pacific recover from a rush to stock up on potassium iodine tablets. What was once available for less than $10 per packet quickly shot past $500 in one online bid to prevent radiation sickness.

And while pill suppliers reported shortages, the World Health Organization issued a statement urging calm.

Could there be a more fitting context to be reminded of Psalm 91:2, the National Day of Prayer’s theme verse for 2011? The Bible urges calm with this life-saving message: “I will say of the LORD, ‘He is my refuge and my fortress, my God, in whom I trust.’” The psalmist correctly understood that during uncertain times, we can count on God alone. Even His Son experienced political upheaval and economic uncertainty during His life on earth, so the Lord knows all about the tension of living in a hysteria-charged world.

Psalm 91 reminds us that it is God who saves us from “the fowler’s snare”—outward attack; and He also saves us from the “deadly pestilence” —inward attack. The passage provides 20 statements of what God will do to protect us, with only one conditional statement in verse 9: “If you say, ‘the LORD is my refuge,’ and you make the Most High your dwelling, no harm will overtake you, no disaster will come near your tent.” The word “dwell,” ownah, in Hebrew is significant. It is used to describe intimacy in a marriage—not a casual dwelling, but one of honesty, vulnerability, and commitment.

Our Founding Fathers understood this concept of dwelling in the presence of the Most High. Struggling to construct a country at a time of great uncertainty, they voted that our lawmakers would pray every day before beginning each session, additionally setting in place a National Day of Prayer on July 20, 1775. Today, in our uncertain times, let’s intercede that the Church would kneel and embrace this same posture of prayer, dwelling in this promise: “He is our refuge and fortress; it is in God that we trust!”

The Lord’s Promises

Posted by Dave Kubal on March 16, 2011 at 15:05

“So the LORD gave to Israel all the land of which He had sworn to give to their fathers, and they took possession of it and dwelt in it.... Not a word failed of any good thing which the LORD had spoken to the house of Israel. All came to pass.” —Joshua 21:43-45

As Joshua was finalizing all of the details of Israel’s conquest of Canaan, we find a remarkable verse: “Not one of all the LORD’s good promises to Israel failed; every one was fulfilled” (Joshua 21:45). Every promise the Lord had made to the Israelites concerning captivity in Egypt, plagues, wandering in the wilderness, conquest, and the peaceful new land, etc. was fulfilled. Hundreds of years of history came to pass in perfect alignment with the Lord’s will!

Almost as an exclamation point to His sovereign will, this chapter gives a special glimpse into God’s heart for a nation. The Lord disperses his priests to serve the people in every part of the country. The Lord is very specific about which of the priestly clans were to go to each of the 48 “cities of refuge” listed in scripture. These priests would later set up synagogues and act as mediators and intercessors for God’s people.

As the final ingredients of the Jewish nation, these safe havens were places of mercy and justice; mercy for the one who unintentionally killed a fellow Jew, and justice for the family of the deceased. It is here that we find that not one of the Lord’s “promises to Israel failed.”

As we intercede for our country, we as the dispersed priests in the land must remember God’s promises for our nation, praying that every one of them would be fulfilled. Our lives as intercessors are evidence of His “special possession” (1 Peter 2:9-10) as we declare His praises and watch for unfolding answers. What a privilege to glimpse firsthand the Lord’s heart to administer justice and mercy for His people here in America!

Do you think our Founding Fathers knew that they would set in motion a country that would send more missionaries and more relief dollars to foreign countries than any other nation in the history of the world? No. These men of prayer could not have known, but their conviction and obedience worked hand-in-hand with God’s faithfulness to pave the way for far-reaching promise.

Ask our Lord, what is it that You still desire to accomplish? By faith, let’s continue to intercede that our nation’s leaders would not derail the Lord’s promises for this country.

A Call To Stand Watch

Posted by Dave Kubal on February 3, 2011 at 9:54

“I have set watchmen on your walls…. They shall never hold their peace day or night. You who make mention of the Lord, do not keep silent, and give Him no rest … till He makes Jerusalem a praise
in the earth.” —Isaiah 62:6-7 NKJ

Our founding fathers set out to make this nation the greatest nation. They understood how critical it was for them to seek “Divine Providence” in order for this to occur. At a critical moment in the forming of our Constitution even Ben Franklin, one of the least religious of our founding fathers, was quoted urging his fellow framers that, “prayers [must be held] imploring the assistance of Heaven and its blessing on our deliberation.” Without the assistance of our Heavenly Father, America would never become a “praise in the earth.”

The desire woven into our culture for America to be the best is a good one —as long as we understand that only our Heavenly Father can do this for His Name’s sake and for His Kingdom. And who is it that moves the hand of our Heavenly Father? Watchmen.

There is much talk about watchmen and God’s intent for this role. It is amazing our Heavenly Father even chooses to use watchmen. He could have put the creation on autopilot or just left it to evolve randomly, but He is so eager to have us involved in shaping history that He has established this position.

What are two elements of this calling? The first element is that watchmen are to be diligent. Watchmen are to never give our Heavenly Father peace until He has accomplished all that is possible with a nation (Isaiah 62:6). We are to stand watch until there is an answer (Habakkuk 2:1).

The other element of our calling is accountability. It is quite chilling: If we hear from the Lord and do not “speak to warn the wicked from his wicked way, to save his life,” God will hold us accountable (Ezekiel 3:17-19). It is our responsibility to be obedient and speak what has been spoken to us.
We must not give up the fight to make America the greatest nation—in obedience to our Heavenly Father—on the face of the earth. We must fight this battle with diligence as watchmen on our knees, realizing there is strict accountability.

Go to GetAmericaPraying.com and join the 1000+ watchmen who have taken their place on the prayer wall for this nation.

A Touch from the LORD

Posted by Dave Kubal on January 6, 2011 at 13:53

“But I your servant have feared the LORD from my youth. Was it not reported to my lord what I did when Jezebel killed the prophets of the LORD, how I hid one hundred men of the LORD’s prophets.... And now you say, ‘Go, tell your master, “Elijah is here.”’ He will kill me!” Then Elijah said, “As the LORD of hosts lives, before whom I stand, I will surely present myself to him today.” —1 Kings 18:12b-15

It was a moment of great victory. Elijah had just stood on Mount Carmel with 850 prophets of Baal and Asherah, watching God rain down fire in what had to be an incredibly dramatic fashion. He then prayed seven times and saw a cloud the size of a man’s hand break a three year drought. Afterwards, he tucked his cloak into his belt and ran with superhuman strength fast enough to overtake Ahab’s horses.

What a day! And yet with Elijah’s impossible victories in 1 Kings 18, the next chapter reveals that he sat down under a broom tree and asked God to kill him. Depressed, exhausted, and intimidated by how his exploits might backfire in the face of his enemies, he prayed twice: “I have been very zealous for the Lord God of hosts; because the children of Israel have forsaken Your covenant, torn down Your altars, and killed Your prophets with the sword. I alone am left; and they seek to take my life” (vs. 10, 14).

The Lord is so good, dispatching an angel that “comes at once” to touch Elijah and feed him during his time of great need. Elijah eats the food and lies down again, still overcome by despair. With the Lord’s gracious understanding of human frailty, He dispatches the angel a second time. Again, the angel comforts and feeds Elijah, this time announcing why: “For your journey is too much for you,” he says.

After this encounter, Elijah travels non-stop for 40 days and nights. His journey into the wilderness culminates when the word of the Lord comes to Elijah who obeys with fully strengthened zeal. The Lord patiently rejuvenates Elijah’s resilience and calling.

As intercessors, we can learn from Elijah’s life that there is often an attack at the point of great victory. It could be a personal attack. It may even drive us to the point where we don’t want to live. It’s at those times that we can ask the Lord to meet us, touch us, and nourish our bodies. Then we will be able to continue to ask the Lord to restore His morals in our country, energize His Church, and raise up those who will speak for Him.

“Father, the time has come…”

Posted by Dave Kubal on December 16, 2010 at 15:14

“Is there anybody else praying?” This question came from an incredible prayer warrior who called the office recently, admitting that she felt dejected and alone. Telling her about the thousands who intercede for the nation, our staff had the privilege to spend the next 30 minutes encouraging this dear lady in the Lord. When the phone call ended, she knew the assurance of unity and joy.

This is exactly what Jesus prayed for the disciples in John 17. He realized that God’s protection is foundational for both unity and joy. His first request for the disciples in verse 11 was, “Holy Father, keep (protect) ... those whom You have given Me, that they may be one as We are.” Protection from what? Protection from discouragement and anything that limits our effectiveness. He continued the prayer in verse 13 by asking that we might experience the full measure of His joy. He knew that the lives of His disciples, His intercessors, would be difficult—even impossible—without our Holy Father’s provision of protection, unity, and joy.

It could be easy to understand unity as a result of joy, but in reality the two are mutually dependent. This is found in verse 22, which is often overlooked, but very important. We have a chance at unity because “the glory which [the Father] gave [Jesus]” has been given to us, “that [we] may be one.” Experiencing God’s glory through each other is critical. Unity and joy are two sides to the same coin, and God’s glory is the source of both.

Protection, joy, unity. As we consider how we are to intercede for our country this year, I challenge you to consider these foundational elements in the life of an intercessor. Ask yourself two questions: 1) Are you experiencing joy? 2) Are you experiencing unity with the body of Christ? Your answers may indicate the level of your need to pray for God’s protection.

I challenge you to pursue joy and unity with great effort. Like the faithful intercessor who called our office, take joy in the knowledge that your burden to pray is not an isolated task. You are not alone. While Jesus kept His team of disciples encouraged by His presence on earth, He prayed for believers to connect in Spirit-filled fellowship in His physical absence.

That day has come. Let’s ask that God’s destiny for our country would unfold through the unified prayers of His Church. Take time this year to pray for protection, experience His joy, and pursue unity in the Body.

A Season for Real Change

Posted by Dave Kubal on November 17, 2010 at 16:18

Today’s Americans are not the first to cry out for change, or to welcomea radical shift in focus. Discontentment is at our core, currentlywoven into the very fabric of who we are as a nation, and echoing thesentiments that first brought pilgrims to these shores. Ourdisenchantment with the abuse of power, and our restlessness withcultural decadence are simply symptoms of national discontent—a desirefor something more; a longing for higher standards and true meaning.

This is nothing new. We have been down this road before.

Take America’s celebration of Christmas, one of our nation’s moresurprising examples of cultural change. A few hundred years ago, thePuritans were so disturbed by materialistic practices influencing theChristmas traditions of their time—the blatant celebration of excess,the distortion of biblical truth—that they demanded reform. Theyexpressed their discontentment with the course of their culture andchose to steer their communities on a different path, even outlawing thecelebration in Boston to help restore godly conduct and perspective.The change took place gradually, and it wasn’t until 1870 that Christmasbecame a federal holiday—a turning point that marked a long journeytoward family-oriented traditions and a heightened reverence for Christand His birth.

Only 140 years later, we are drifting in our focus once again. Culturaland political distortions overwhelm us on all sides. As we consider howto intercede for our nation today, with all of its potential for changeand transformation, our prayer must be that any renewed discontentmentwould drive us to embrace an attitude of reverence for God. Without thisas our foundation, real change will never come. Regardless of who wasjust elected or which party is in control, we must intercede that anattitude of reverence and humility would affect everything from personalbehavior to federal law.

May the Church fall upon her knees and cry out to God for mercy, that wewould be known as a country with restored reverence for Christ, who isboth our Cause and our Celebration. What a true gift of change thiswould bring!

“The fear of the LORD is the instruction of wisdom; and before honour is humility” (Proverbs 15:33).

Rebuilding Hope for Today

Posted by Dave Kubal on October 28, 2010 at 16:41

Rebuilding Hope for TodayOctober 28th, 2010 by Dave KubalSee if these sound familiar:* “America will not recover.”* “By such-and-such date there will be another economic meltdown.”* “You don’t find the U.S. in End-Times scriptures, so surely we will not survive.”* “This is the beginning of the end.”Prophetic half-truths abound these days, and lack a full presentation of the scriptures. God’s immutable Word clearly states that we join him in shaping history. “If my people…” (2 Chr. 7:14), “If the nation I warn repents…I will relent” (Jer. 18:8), “God saw… how they turned from their evil ways, he had compassion” (Jonah 3:10), “If you can find but one person…” (Jer. 5:1).The effects of cloudy half-truths often paralyze the Church. Survival experts will tell you the most important aspect of survival in dire times is to have hope. Silence and passivity are signs that the Church is losing hope for our country. This certainly cannot be the heart of God. In fact, God encouraged his people to “pray for the city” where he carried them into exile, that they might have peace and prosperity (Jer. 29:7).Our God desires to dispense mercy. Yes, justice is foundational to his character, but Scripture assures us that just one turned heart can turn God’s heart. Just one person’s prayer can turn his heart toward compassion. He is always looking to see if our hearts are aligned with his and interceding on behalf of his people. He delights in demonstrating his love.Do not let hopelessness paralyze you!Continue to believe that God has a plan and destiny for this country. Continue to pray and intercede for God’s will to be done. He wants us to join him in his plan for every nation and this world.One person, praying with humility, can turn the heart of God and invite his deliverance.Will it be you?You will never know unless you try.

Talking Politics in Church

Posted by Dave Kubal on October 14, 2010 at 10:14

“You can’t talk politics in the church; everyone knows it’s against the law.”How often do you suppose this will be said over the next few weeks? It will be said enough that it would be good for Christians to understand what the law is and where it came from.For the first 178 years of our country’s history, politics were freely discussed in churches. In fact, one of the early leading preachers, Dr. John Witherspoon, signed our Declaration of Independence, helped author the Articles of the Confederation, and even served on more than 120 congressional committees as an elected official from New Jersey. He was the President of the College of New Jersey (now called Princeton), whose motto was “Dei sub numine viget,” which means “under God’s power she flourishes.”As Witherspoon’s example shows, our founders did not have a problem talking about politics in church. On May 17, 1776, the Continental Congress declared a National Day of Fasting, Humiliation, and Prayer for God’s guidance in the war. That same day, Dr. Witherspoon delivered a sermon titled “The Dominion of Providence over the Passions of Men,” and he publically addressed England’s attempt to control the colonists’ laws. Witherspoon said, “I call this claim unjust, of making laws to bind us ‘in all cases whatsoever’…If your cause is just, you may look with confidence to the Lord, and intreat him to plead it as his own. …The cause in which America is now in arms, is the cause of justice, of liberty, and of human nature. So far as we have hitherto proceeded, I am satisfied that the confederacy of the colonies has not been the effect of pride, resentment, or sedition, but of a deep and general conviction that our civil and religious liberties….”(If you would like to learn more about our country in the form of a historical Bible studies series, go to IFAResources.com and look for the “Country of Character” series.)There was complete freedom to talk about politics up until 1954. On July 2, Representative Lyndon Johnson made a motion on the floor as the House was debating the 1934 IRS Tax Law when he said the following:Mr. JOHNSON of Texas: Mr. President, I have an amendment at the desk, which I should like to have stated.The PRESIDING OFFICER: The Secretary will state the amendment.The CHIEF CLERK: On page 117 of the House bill, in section 501(c)(3), it is proposed to strike out “individuals, and” and insert “individual,” and strike out “influence legislation.” And insert “influence legislation, and which does not participate in, or intervene in (including the publishing or distributing of statements), any political campaign on behalf of any candidate for public office.”Mr. JOHNSON of Texas: Mr. President, this amendment seeks to extend the provisions of section 501 of the House bill, denying tax-exempt status to not only those people who influence legislation but also to those who intervene in any political campaign on behalf of any candidate for any public office. I have discussed the matter with the chairman of the committee, the minority ranking member of the committee, and several other members of the committee, and I understand that the amendment is acceptable to them. I hope the chairman will take it to conference, and that it will be included in the final bill which Congress passes. [Emphasis added.]And with that short interchange the Church was “muzzled.” There was no debate. There was not a committee that looked into this, it just happened. Subsequent writings of both his staff and Johnson himself indicate that he never intended this legislation to apply to churches, just “non-profits.”Why did he do this? History is not clear-cut, but he was in a difficult reelection campaign, and two outspoken anti-communist non-profit organizations in Texas were neutralized because of this legislation.To summarize, today’s interpretation of the law is that, yes, you can talk about politics. It must be done in a non-partisan manner with an effort to educate people about issues. To understand today’s interpretation of the law check out the Pew Foundation’s excellent publication on the issue:“Religious Organizations…are prohibited from participating or intervening, directly or indirectly, in any political campaign on behalf of or in opposition to any candidate for elective public office. This prohibition encompasses a wide array of activities. It precludes direct political activity, such as the making of statements, whether oral, written or in an electronic medium, supporting or opposing any candidate, political party or political action committee (“PAC”), creating a PAC, rating candidates and providing or soliciting financial support (including loans or loan guarantees) or in-kind support for any candidate, political party or PAC. It also precludes indirect political activity of a sort that reflects bias for or against any candidate, political party or PAC, such as distribution of biased voter education materials or conduct of a biased candidate forum or voter registration drive.”The Church in America needs to understand where our laws came from and why our laws exist. The most important question we need to ask ourselves is, what is God’s perspective on the law? If the laws are unjust, as Witherspoon put it, “you may look with confidence to the Lord, and intreat him to plead it as his own…the cause of justice, of liberty, and of human nature.”Now when someone says “you can’t talk about politics in church,” you can give them an answer with depth and confidence.

The Mid-Term Elections Have Already Begun

Posted by Dave Kubal on October 14, 2010 at 10:10

Experts estimate that at least one third, maybe as high as one half, of voters will vote before the official election date. All states allow for absentee balloting, but 32 states (plus the District of Columbia) allow early, in-person voting. Georgia, Vermont, Maine and South Dakota have allowed in person voting since September 21. Candidates have factored these facts in, realizing that their campaign cannot simply put on a last minute push to convince people which way to vote.

As Christians consider their need to intercede for these elections, we need to have the same understanding. People are making up their minds and casting their ballots right now! If you have considered praying for the election, but have been putting it off, now is the time to ask the Lord to intervene in our country. A great website to find issues and candidate information is iVoters.com.

“Can a corrupt throne be allied with you – one that brings on misery by its decrees?” Psalm 93:20 serves as a great reminder for all believers to pray for honest and truthful elected officers who will enact laws that bless people. Let’s begin praying this scripture over our election today!If you would like to encourage your family or friends to pray for our country, consider our historical Bible study called “Legacy of Character.” The study tells stories of our Godly heritage with practical application for today. Go to IFAResources.com for more info.

Here is a complete list of early voting states, taken from the National Conference of State Legislatures.
Early Voting

The following states permit no-excuse, in-person early voting at election offices, and in some cases, at satellite locations:

Alaska Montana
Arizona Nebraska
Arkansas Nevada
California New Mexico
Colorado North Carolina
District of Columbia North Dakota
Florida Ohio
Georgia Oklahoma
Hawaii South Dakota
Idaho Tennessee
Illinois Texas
Indiana Utah
Iowa Vermont
Kansas West Virginia
Louisiana Wisconsin
Maine Wyoming
Maryland

Supreme Court Justices Pray Together

Posted by Dave Kubal on October 5, 2010 at 10:47

We should join our Supreme Court Justices in praying to our Supreme God to guide and direct this fall’s Supreme Court session. The tradition of “Red Mass” began in 13th century England, and has been practiced in the U.S. for the last 57 years. Red Mass is a Catholic mass held on the first Sunday in October at a cathedral in Washington. This year, a majority of the Court’s Justices (five in total) were present, along with Vice President Biden. The Archbishop of Washington, who officiated the mass, said, “They come to ask the blessing of the Spirit before the new session, but also give thanks for the freedoms we enjoy, particularly that we are a nation of laws.”Here are prayer points for some of the cases that will be heard this term:* On 10/6 Snyder v. Phelps will be heard, concerning Rev. Fred Phelp’s protection of free speech to protest at military funerals. Pray for the love of Christ to come through along with unity in the body.* On 10/13 Skinner v. Switzer will be heard, on the question of inmates’ ability to use DNA tests. Pray for justice and truth to reign.* On 11/2 Schwarzenegger v. Entertainment will be heard, concerning California’s attempt to block the sale of violent video games. Pray for the youth of America that they would grow up in a country where there would be protection from violence and not the celebration of it.* On 11/3 Arizona Christian School Tuition Organization v. Winn will be heard, over an Arizona law that allows residents to designate a portion of their taxes to school tuition programs, most of which were given to religious schools. Pray for an accurate interpretation of the First Amendment and the “establishment clause.”

Was the “Great Recession” caused by greed?

Posted by Dave Kubal on September 24, 2010 at 11:00

Was the “Great Recession” caused by greed? Proponents of this view will tell you that the US economy was brought to its knees by greedy traders on Wall Street who created exotic derivatives. Supposedly, these financial instruments created huge amounts of wealth, which now lines the pockets of those investors. I have even heard it said that this is the first economic downturn caused by a moral issue: greed.

I believe that the true cause of the “Great Recession” goes much deeper than “credit default swaps.” Credit Default Swaps (CDS) are basically an insurance policy that an institution may buy to protect itself against a borrower who defaults. Things took a strange twist when the market created default swaps that could be sold to someone who had not even lent money. These “naked default swaps” actually came to make up the majority of the CDS market. When the housing bubble burst, the institutions that issued the CDSs owed more money than they had, creating a crisis for lenders. Thus, the “Great Recession.”

Why were CDSs so attractive to investors? Shrewd investors understood what was really going on in the housing market. They knew that people were eventually going to default on their loans. Too many people had loans that they could not afford. Investors understood this fact, and bet on it to the tune of trillions of dollars.

The environment that allowed this to happen was created by the Community Reinvestment Act, which was passed originally passed in 1977 as a method to reduced discriminatory practices in lending. The intent was good, but taken too far. Federal Reserve Chairman Ben Bernanke has commented that “social, economic, and regulatory factors contributed to the perception that banking institutions were failing to adequately serve the credit needs of some residents of their communities.”

This perception was taken a step further when advocacy groups began to criticize banks’ lending practices, as a result of the Financial Institution Reform and Recovery Act of 1989. This act increased the visibility of banks’ lending practices, and was used by advocacy groups to put pressure on lenders to reduce their lending criteria.
Here lies the real cause of the “Great Recession.”

It is difficult to characterize all advocacy groups’ philosophies, but groups forcing lenders to lend with unsound criteria typically argue that all people deserve equal opportunities, regardless of a person’s lifestyle. Underlying that idea is the assumption that all people are basically good. The thought is that people who act irresponsibly will change their behavior, if only given the right opportunities.

Those with a biblical worldview have a completely different understanding. A biblical worldview considers Romans 3:23: “For all have sinned and fall short of the glory of God.” Outside of a life transformed by Christ, we cannot expect good things. People can try, but if the source of the well is dirty water, the well will contain dirty water.

There are consequences for our sin. “I have sworn with uplifted hand that they must bear the consequences of their sin, declares the Sovereign LORD” (Ezekiel 44:12). God will not be mocked; if people do the wrong things, they will suffer the consequences.

If we depart from God’s ways at the very basic level, we step onto a slippery slope that is very difficult to get away from. It was not greed that caused the “Great Recession,” but a misunderstanding of human nature. Greed was a part of a progression of events and actions based upon a faulty worldview. As we enter this election season, let us all pray that God would grant his wisdom to this country to make decisions based on truth and not lies.

_______

[1] Chairman Ben S. Bernanke, speech at the
Community Affairs Research Conference, Washington, D.C., March 30, 2007.