Sep 14

Very close to Sep 11, is sep 14, exactly one year after the collapse of Lehman Brothers. The US govt back then refused to save the bank with a long traditional, and it thus had to collapse due to its sheer amount of loses caused by the devaluation of its toxic assets (the mortgage backed securities).

After that, a tsunamic of financial institutions collapse followed. The govt stepped it and poured almost a trillion dollars into the financial system in a desperate bid to avoid a financial system meltdown. Yes, a trillion dollars. Probably enough to bring an entire 3rd world country to have skyscrapers in it.

After that, a string of regulatory reforms were enacted, and fast forwarding, it seems that the dust has settled and the financial system is strong again, picking up, traders are back at their game again. The question is, will things turn topsy turvy again? Yes it will.

The root of the problem wasn’t solved. Its not some toxic product, or about whether its capitalism or communism, but the greed of man, the severe greed of man, is ever present. They might not offer mortgage backed securities any more, but the so called ‘financial innovation’ will once again come in the form of disguised ‘vanilla’ products that might seem to offer simple fixed returns, but man’s greed will soon let it loose again, derivatives will start to creep around the corner, and we are in the process of creating another bubble again.

No amount of financial reform will resolve this problem. The bible says that we cannot serve two masters. We cannot serve the Lord at the same time and also serve money. Not that we cannot possess money, its important and a very important tool for expansion of the church, benefitting brethens in need, and a tool for our livelihood.

Its the priority that we rank them. God first? Money first? Which is our Lord? Or is God ever in the picture? The bible has mentioned that blessings come upon the man who meditates upon His Word day and night. Regarding blessings from money? Erm…Or rather, regretful consequences from greed?

The priority is important. With God first, we will consider how we should gain our money. Through proper, moral, God favouring means. And also, the intent, when we earning this money.

God’s abundant grace is ever present, and might possibly be in the form of money, although its just one out of the millions of ways his grace can flow to us. What’s important is that God asks us to seek His kingdom and His righteousness first. In short, its to seek Him first, His ministry, His Word, to Benefit his children first. And after that, if He’s willing, the rest will follow through.

So, countdown to the next financial collapse? Can probably look out for a few signs, some so called ‘super goody’ financial product appears again, might probably be from real estate given the frenzy now in singapore. Look out for speculation on prices for ALMOST EVERYTHING, commodities, wines, art pieces, i dunno…erm…names? Basically speculating on anything.

Till now, the eager bankers would probably not worry about when the next collapse will come…