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Mike hopes to see the world turned upside down through local communities banding together for social change, especially churches which have recognized the radical calling to be good news to the poor, to set free the prisoners and oppressed, and to become the social embodiment of the reign of God on earth as it is in heaven.

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Showing posts with label greed. Show all posts
Showing posts with label greed. Show all posts

Friday, September 27, 2019

Something on Tragedy

Early in his career as a theologian, Stanley Hauerwas challenged the pattern of public Christian rhetoric by claiming that much of the thinking and living of the church in the U.S.A. had lost its understanding of the tragic nature of human existence.  Some kinds of scientific rhetoric seek to provide a theodicy of necessity; in pop culture, the harshness of nature becomes "the circle of life."  Thus the horrors of the world can be put aside as somehow inherent in the system.  I'm not trying to claim that any of my scientist friends participate in this kind of reductionist philosophy, but I'm characterizing a kind of rhetorical repositioning of the aspects of life that one might call tragic.

It happens in other ways, too.  Self-help gurus try to convince us that we can avoid the tragic by simply aligning our lives the right way, taking the right steps, making the right friends, using the right techniques, and focusing on the right goals.  Positive thinkers try to make sure they have the right thoughts and say the right words so that they do not become the cause of their own pain and problems.

All of these kinds of philosophical convolutions help to hide from consciousness that the world does not happen strictly according to human choice and plan.  Part of the truth of tragedy is that an element of existence in this created world still can be called fortune.  Good fortune and bad fortune are not to be confused with a supernatural power of fate or determinism, nor to be confused with a quality attached to a person making him or her lucky or unlucky.  Fortune is a term naming what we acknowledge as factors beyond our control.

A hurricane hits land on the coast of one state and not another.  A tornado strikes one neighborhood and not the next one.  One person develops cancer, and another person with a very similar set of life circumstances does not.  One child grows tall and athletic, another excels at taking standardized tests, and another has physical features deemed beautiful by the culture.  I am not making an argument that these are utterly random occurrences, but they also are not matters strictly under human control.  When there is an understanding of fortune as an element of our existence, then it is also possible to conceive of the tragic.

We do not choose to be born.  When we are born, we do not choose our parents and their ancestral heritages.  We don't choose the neighborhoods in which our parents live when we come into the world.  We don't choose their religious and cultural background, nor the language that they speak and will teach us to speak.  All of these are elements of fortune.  Sometimes fortune allows a person to avoid many life difficulties.  Other times, it opens one up to the tragic.

One major example of how the absence of fortune and tragedy have hindered biblical interpretation is the well-known conversation Jesus has about wealth and poverty with his fellow diners and disciples.  The people having dinner are not very sympathetic toward a woman who comes to the dinner and anoints Jesus' feet with an expensive jar of perfumed oil.  One complains she could have been more practical and sold the perfume for a high price, using the money to help the poor.  Jesus is not very patient with that statement, and suggests that the speaker has surprised him with a sudden concern about poor people that was missing on the other days they had been together.  This is the story in the foreground when Jesus says, "The poor will always be with you."

Another biblical text is in the background, as Jesus' perspective on how to live is rooted in his study of the scriptures.  His statement is a quotation from one of the most important economic passages of the Bible: Deuteronomy 15.  This text provides the divine mandate for economic justice, for the safety net and economic security for all.  It says, "There will be no need among you," explaining that God will bless the community with what they need.  But it also says, "there will never cease to be some need," because things happen.  Bad fortune comes along.  Sometimes people make bad decisions, but more often, they find themselves in untenable situations.  Maybe the person in the home who contributed the most to their economic well being becomes sick or dies.  Maybe another family member requires close care, making it hard for workers to get the necessary work done to keep the house supplied with food and other goods.  Maybe a storm or flood or fire harms some households.  Maybe criminal behavior or war affects the viability of some people's economic situation.

Deuteronomy instructs the people to keep their hands open to the poor.  Don't be tightfisted.  Give what is needed to fulfill that mandate: there will be no need among you.  When the community finds people in need, they share the bounty of God.  Some will experience tragedy.  We cannot eliminate all tragedy.  But we can be present to make sure that tragedy does not leave people hungry or homeless.

Deuteronomy is reminding us that tragedy is part of life.  Our responsibility is to care for those who face tragedy.  Moreover, if there are ways to prevent some kinds of tragedies, if they are caused by systemic injustice, then we ought to be doing work to prevent the continued influence of those unjust systems.  Thinking good thoughts will not keep tragedy from happening nor make it go away.  No amount of self-help practices can allow persons to control their lives to the point that tragedy cannot strike.  The tragic is part of human life, part of creation's finitude.  It is in the commitment to one another, to walk together, to share the goods of creation among us all, to bear one another's burdens, to live as beloved community for which we were created and which is our purpose for living--there we find our defiance against the power of tragedy to control us.



Tuesday, June 01, 2010

Isaiah and Economic Justice 11: All People and Nations Standing Before a Just God

Isaiah 10:5-7, 11-15, 33-34

Ah, Assyria, the rod of my anger—
     the club in their hands is my fury!
Against a godless nation I send him,
     and against the people of my wrath I command him,
to take spoil and seize plunder,
     and to tread them down like the mire of the streets.
But this is not what he intends,
     nor does he have this in mind;
but it is in his heart to destroy,
     and to cut off nations not a few.

"Shall I not do to Jerusalem and her idols
     what I have done to Samaria and her images?”

     When the Lord has finished all his work on Mount Zion and on Jerusalem, he will punish the arrogant boasting of the king of Assyria and his haughty pride. For he says:

“By the strength of my hand I have done it,
     and by my wisdom, for I have understanding;
I have removed the boundaries of peoples,
     and have plundered their treasures;
     like a bull I have brought down those who sat on thrones.
My hand has found, like a nest,
     the wealth of the peoples;
and as one gathers eggs that have been forsaken,
     so I have gathered all the earth;
and there was none that moved a wing,
     or opened its mouth, or chirped.”

Shall the ax vaunt itself over the one who wields it,
     or the saw magnify itself against the one who handles it?
As if a rod should raise the one who lifts it up,
     or as if a staff should lift the one who is not wood!

Look, the Sovereign, the Lord of hosts,
     will lop the boughs with terrifying power;
the tallest trees will be cut down,
     and the lofty will be brought low.
He will hack down the thickets of the forest with an ax,
     and Lebanon with its majestic trees will fall.


The Assyrian imperialism and its widespread destruction of cities, villages, farms, and people, raises theological questions for the Isaiah and the people.  First, the Assyrians are not examples of obedience to Yahweh.  They see the gods of other peoples, including Judah, as idols, as weak deities who will fall before their divine mission.  They pursue greed through conquest.  Assyria and its leaders are also guilty of economic injustice.  Why would God allow Assyria to succeed while judging the sins of Judah and Israel?

Isaiah declares that Assyria's time will come.  They also stand under the judgment of God.  In the meantime, God allows the cycle of violence and greed to work itself out, sowing and reaping destruction.  Assyria does not march across the continent with an understanding of its conquest as the judgment of Yahweh.  For Assyria, it is the demonstration of the greatness of their generals and armies.  Thanks to their own greatness, Assyrian leaders believe they will grasp and carry away the wealth of the nations.  They will plunder all the treasures of the continent and claim it for themselves.  This is the very same sinfulness of the leaders and elite of Judah, expanded to an even more violent dominance and an even more vast landscape.  But God is not "blessing" Assyria.  Assyria will quickly sow the seeds of its own destruction.

Second, in the process of Assyrian conquest, the widows and orphans, the weak and the vulnerable, will also suffer, as stated in chapter nine.  Here in chapter ten, Isaiah offers more insight into this theological problem about the suffering of innocents.  Assyria, while serving as an instrument of judgment, does not act in accord with the will of God.  Imperialistic war, violence, plunder, killing and maiming--these are not the ways of God.  They are the ways of sin.  God is not endorsing violence, but allowing sin to work out its terrible consequences.  Violence comes into the world, not by the will of God, but by the freedom to be greedy, self-aggrandizing, possessive, and hateful that God has allowed to humanity.  This same violence led to the organized use of power to execute the sinless one, Jesus.  God is not pleased to see this violence, but God is willing to endure the violence to which humanity finds itself in bondage.  The struggle of righteousness and justice is to push back the powers formed in violence in the name of those formed in peace and justice.

So Assyria will have its day of judgment as well.  As Dr. King said, “Along the way of life, someone must have sense enough and morality enough to cut off the chain of hate.”  That is what seeking economic justice is about.  Someone has to have the sense to say enough is enough in exploiting workers and the poor.  Someone has to stop the destruction, stand in the gap, speak truth to power, lift as we climb.  That is why the prophecies of the Old Testament are always conditional.  There is another way that leads to peace.  Jesus wept over Jerusalem's failure to find that way.  But if the unjust structures stand, the road will lead to a downward spiral of violence.  Pray that the Lord will send workers into the harvest, workers who know the good news of the way of Jesus.

Friday, May 28, 2010

Isaiah and Economic Justice 9: Blinded by Greed

Isaiah 9:8-16

The Lord sent a word against Jacob,
    and it fell on Israel;
and all the people knew it—
    Ephraim and the inhabitants of Samaria—
    but in pride and arrogance of heart they said:
“The bricks have fallen,
    but we will build with dressed stones;
the sycamores have been cut down,
    but we will put cedars in their place.”

So the Lord raised adversaries against them,
    and stirred up their enemies,

the Arameans on the east and the Philistines on the west,
    and they devoured Israel with open mouth.
For all this his anger has not turned away;
    his hand is stretched out still.

The people did not turn to him who struck them,
    or seek the Lord of hosts.

So the Lord cut off from Israel head and tail,
    palm branch and reed in one day—

elders and dignitaries are the head,
    and prophets who teach lies are the tail;

for those who led this people led them astray,
    and those who were led by them were left in confusion.


The ninth chapter of Isaiah begins with a familiar advent passage.  It celebrates the end of oppression and the coming of a wise and just ruler.  This ruler will be born for greatness and receive titles of honor such as "Prince of Peace."  Peace, Justice, Righteousness--this is the way of God which Isaiah announced.

The second half of the chapter warns the reader not to expect this blessed revolution just yet.  Even though judgment has already begun to befall the people of Israel and Judah, the leaders and the elite have not listened.  It is just as chapter 6 said.  They will look but not understand.  Having felt the sting of judgment, the people in charge decided to "speak their blessing into existence."  Against all evidence, they said they would build fancier houses and restore their woodlands with even more luxurious trees.

As the earlier chapters of Isaiah have shown, the only way they will build fancier houses and enrich their lands is by further oppressing the poor.  They have not sought to know the Lord better and to understand what would please God.  They have not comprehended God's love for justice.  All they have thought is that they deserve to live the high life, so they will do what it takes to get back to it.

Again, the misleaders have appeared.  Elders, dignitaries, and prophets who teach lies have led the whole nation astray.  They are bringing on the judgment of God, not listening to the faithful message which calls Israel to be a nation in which all people share in the bounty of God's creation.

After the quoted text, Isaiah hits the hard part of the judgment.  It deals with the suffering inflicted on the whole people.  Some have created unjust structures and benefited from others' hardships.  The others were left with confusion.  Judah's leaders had build an unjust and corrupt system.  Such a system comes from the basest motives of selfishness, lust, and greed.  In a world designed around selfishness, lust, and greed, everyone is trying to gain an advantage and use whoever they can to fulfill their insatiable corrupt desires.

Further toward the end of the chapter it says that they devoured their own kin.  Manasseh and Ephraim fought each other, and they both turned on Judah.  Scheming, stealing, fighting, killing--the sins of oppression grow ever more evil and deadly.  Everyone pays the price, even widows and orphans who did not bring it on themselves.  Any sign of weakness gives someone else permission to crush and plunder.  That is what will happen when Assyria and Babylon get ready to pounce.

What Isaiah is describing happens in our workplaces.  It happens in our neighborhoods.  It happens on the City Planning Commission, at the country club, in the board room, at the elite restaurants.  It happens anywhere that people stop thinking of the vulnerable and start thinking of ways to leverage their connections to gain from the unsuspecting and unrepresented.

Wednesday, February 03, 2010

Isaiah and Economic Justice 4: Misleaders

Isaiah 3:12b-15


O my people, your leaders mislead you,

….and confuse the course of your paths.

The Lord rises to argue his case;

….he stands to judge the peoples.

The Lord enters into judgment

….with the elders and princes of his people:

It is you who have devoured the vineyard;

….the spoil of the poor is in your houses.

What do you mean by crushing my people,

….by grinding the face of the poor? says the Lord God of hosts.


Isaiah 3:18-24


In that day the Lord will take away the finery of the anklets, the headbands, and the crescents; the pendants, the bracelets, and the scarfs; the headdresses, the armlets, the sashes, the perfume boxes, and the amulets; the signet rings and nose rings; the festal robes, the mantles, the cloaks, and the handbags; the garments of gauze, the linen garments, the turbans, and the veils.


Instead of perfume there will be a stench;

….and instead of a sash, a rope;

….and instead of well-set hair, baldness;

….and instead of a rich robe, a binding of sackcloth;

.instead of beauty, shame.

Isaiah 3 continues to point out the instability of the conspicuous wealth of the powerful in Israel. One part of the chapter comments on the wealthy women who love to show off their finery while constantly shopping for more. But this is not strictly a criticism of women. It is about one of the visible features of a system in which the wealth of has grown so far beyond the level of human need that it becomes primarily a measuring rod within a competitive structure of status and power.


In this text, it is the most powerful, the same ones who by social delegation should be most responsible, who receive the greatest attention. The leaders have brought about this problem. The elders and princes have brought the nation to this desperate economic situation, yet they do not even see the problem. They lie to themselves and to everyone else to justify a system organized around fulfilling their insatiable greed. Of course, what they are doing is right since it is working for them; moreover, if what they are doing is right, it is by their logic good for all.


At the heart of their sin is deception. They mislead the people, and ultimately come to believe their own deceptions. They foment confusion about economic matters which anyone should be able to understand. They create technical language and lengthy regulations full of caveats and qualifications in order to conceal their intentions. They work in backrooms to strategize the path to their self-interest, then dress it in empty platitudes of the common good. We might recognize this in the marketing of subprime mortgages. We might hear echoes of their deceptions in the cunning secrecy of credit default swaps. We may know of what they speak in the hidden fees and traps of consumer credit. We may continue to hear the deception in the claim that capping interest rates will make it impossible to loan money to lower-income people, as if high interest rates are transforming them into becoming more creditworthy.


The prophet does not mince words. The vineyard image bears rich significance here. First, it is a symbol of a prosperous and good life. To have a thriving vineyard is to be blessed with wine at one’s table as well and with a valuable product for trade. But equally importantly, a vineyard is an image of Israel as the Lord’s planting and cultivation of a people (5:1ff). God has tenderly and conscientiously cared for the vineyard. But rather than Israel blossoming and bearing rich fruit as a people, the ones who should have cared for the vineyard have stripped it bare and left it in ruins.


The image gives way to a very concrete indictment. After saying they have devoured the vineyard, the prophet explicates the symbolic language. Their fullness and fatness comes from despoiling the poor. Their wealth is the product of oppression. Their mansions are framed and decorated by the rightful possessions of the poor. Their wealth is not derived from their virtue. Their only expertise is in being good criminals and hiding their crimes. This is what God despises.


Ultimately, the prophet claims that their appearance of greatness is ephemeral. They will lose it, and this oracle spares no detail. Perfume, sash, hairdo, robe, and all other trappings of beauty will soon be gone. In their place will come a stench, a raggedy piece of rope, a hairless head, sackcloth for clothing, and shame. This kind of economic system cannot sustain itself. Moreover, God demands justice. A prophet must rise up to speak the truth.


One last quotation from the Bruce Cockburn song, “Call It Democracy,” may help us see.


See the paid-off local bottom-feeders

Passing themselves off as leaders.

Kiss the ladies. Shake hands with the fellows:

Open for business like a cheap bordello,

And they call it democracy.




Monday, July 27, 2009

Economic Recovery for All 7: Faith Perspectives, Pt 3

THEOLOGICAL REFLECTION ON THE ECONOMY
A Working Paper for North Carolina United Power
from an Interchange Among Theological Educators
July 2009


III. Faith Perspectives on Responding to the Crisis

B. Biblical, Theological, and Ethical Principles Guiding NCUP Actions and Campaigns in Response to the Economic Crisis

5. Economic value tied to real, material goods and services, not ephemeral financial machinations

The practice of making money off of money was strictly limited and often prohibited throughout the history of the Christian church. Citing Exodus 22:25, which states, "If you lend money to my people, to the poor among you, you shall not deal with them as a creditor; you shall not exact interest from them, " Thomas Aquinas, wrote that "To take usury for money lent is unjust in itself, because this is to sell what does not exist, and this evidently leads to inequality which is contrary to justice" (Summa Theologica, IIa IIae. Art. 1, Q. 78). One of the critical problems that created the economic recession was the fact that mortgage-backed securities and other financial products were sold and resold for values that had lost touch with the actual homes and real estate that stood behind them. Credit default swaps were another form of betting on the paper assets of others, using more money than anyone can afford to risk. Playing this imaginary game of finance puts the entire economy at risk.

6. Transparency and honesty in exchanges and business dealings

The current practices of consumer credit and the recent "creative financing" of mortgages fall under the condemnation of the biblical view of usury. High-powered marketing campaigns promise easy access to money, with the details of excessive interest rates, charges, and penalties often relegated to the fine print. Offering low "minimum payments" and changing the terms of a credit agreement are deceptive practices that often saddle the unsuspecting borrower with accruing debt accompanied by unforeseen and undisclosed rate hikes.

These practices strongly parallel the devious ways of Zacchaeus, the tax collector mentioned in Luke 19, whom Jesus admonished to rethink his business tactics. Zacchaeus' repentance leads him to repay those he has cheated fourfold, an act of obedience to Jesus that comes into full view when contrasted to a story from the previous chapter of Luke. There one sees the failure of the rich young ruler who could not bring himself to sell what he had and distribute it to the poor in order to follow Christ. There is a clear message here that Jesus' followers must turn from lives of economic exploitation toward lives of generosity and just and honest business activity.

7. The dignity of work and the opportunity to contribute to the material and spiritual common good

In a biblical economics, work has dignity as the creative activity of those made in the image of God. Thus, human beings work as for the Lord and not for human masters (Col. 3:23). Even so, this work done unto God also serves the divine purpose of doing good for all. Paul encouraged the Philippian Christians to emulate the ways of Christ when he wrote, "Let each of you look not to your own interests, but to the interests of others" (Phlp. 2:4).

All work which serves the common good has dignity as part of God's purpose for creation. When market economies become distorted by wealth, greed, and inequity, the work of some earns status and wealth, while other essential work receives disdain and very low compensation. Although financial institutions are resisting limits on wages of executives because they fear a "talent drain," they consistently oppose better wages and benefits for the average worker. The shocking fact is that many of these so-called “talented” executives played games with other people's wealth, took undue risks, promoted questionable mortgages and remained blind to the housing bubble.

Why aren't average workers considered "talent?" Workers are the assets that make careers for executives possible. A long-range view of business and the economy aims to reward and keep talented, hard-working people. Only shortsighted greed leads some members of a corporation to pursue their own self-interest at the expense of the interests of those responsible for creating the value, through goods and services, that sustains the corporations and the common good. "The laborer deserves to be paid" (1 Tim. 5:18).


Sunday, July 26, 2009

Economic Recovery for All 5: Faith Perspectives, Pt. 2

THEOLOGICAL REFLECTION ON THE ECONOMY
A Working Paper for North Carolina United Power
from an Interchange Among Theological Educators
July 2009

III. Faith Perspectives on Responding to the Crisis

B. Biblical, Theological, and Ethical Principles Guiding NCUP Actions and Campaigns in Response to the Economic Crisis

1. Interdependence of creation and humanity's birthright to share in God's gifts

Gratitude toward God, communal interdependence, and mutual accountability are at the core of a biblical understanding of economics, grounded in the Jewish scriptures and reaffirmed in the Christian scriptures. In the parable of the "rich fool," a man reaches the apex of prosperity because of bumper crops on his farm. He congratulates himself as if it were all his own doing, only to lose enjoyment of his success when he dies in his sleep (Luke 12:13-21). Human beings share a mutual obligation for the well-being of all. Cyprian of Carthage taught, "Whatever is of God is common in our use; nor is any one excluded from God's benefits and God's gifts, so as to prevent the whole human race from enjoying equally the divine goodness and liberality." One "who, as a possessor in the earth, shares his returns and his fruits with the brothers and sisters, while he is common and just in his gratuitous bounties, is an imitator of God" ("On the Unity of the Church," Ante-Nicene Fathers 5:25).

Indeed, if we are to flourish or even survive, we must act in love. We must receive what we need from others and we must share what they need from us. If we don’t receive from others, we will die. If we do not share what we have, then they will be less likely to share what we need from them; we both will die. We must act in love or face destruction.

According to Howard Thurman, “Human beings, all human beings, belong to each other, and anyone who shuts themselves away diminishes themselves, and anyone who shuts another away from themselves destroys themselves” (The Search for Common Ground, 104). Because of the way God created the world, our own, truest self-interest is inextricably tied to that of others. So, pursuing God’s kingdom, or righteousness, is to participate in and contribute to the great exchange, by which we all survive and flourish. It is to honor others by receiving their goods and virtues and, then, sharing our own goods and virtues vital to others. “We are,” as Dr. Martin Luther King, Jr. said, “caught in an inescapable network of mutuality, tied in a single garment of destiny” ("Letter from Birmingham Jail").

2. The unconditional protection of those vulnerable to loss of food, shelter, clothing, and other basic goods of life

The divine plan for humanity's flourishing requires that societies and communities manage their wealth toward this end: "There shall be no one in need among you" (Deut. 15:4). In the story of the fledgling church after the Spirit of God moved at Pentecost, the writer states the budding fulfillment of this teaching, "There was not a needy person among them" (Acts 4:34). The teachings of Christian theologians through the ages have reinforced this view of wealth. Martin Luther wrote of Deut. 15:4, “Now if God gave this commandment in the Old Testament, how much more ought we Christians be bound not only to allow no one to suffer want or to beg” (“A Treatise on Usury”).

The Year of Release, also called the Jubilee, offered a new beginning, a second chance, and a path to keep the entire economy flourishing for the long term. There must be no irreversible poverty, no unlimited acquisition of houses and lands, goods that should be distributed among all the community. Houses give shelter; fields provide food. Both are essential to making a livelihood.

The prophet Isaiah condemned those "who join house to house, who add field to field, until there is room for no one but you, and you are left to live alone in the midst of the land!" (Isa. 5:8). The prophet Micah denounced those who “. . . covet fields and seize them, houses, and take them away . . . who cry “Peace” when they have something to eat and declare war against those who put nothing in their mouths” (Micah 2:2; 3:5). Nehemiah chastised the wealthy landowners who had accumulated numerous houses and fields because of the misfortunes of their neighbors, and he publicly denounced them for their selfish greed. The very identity of the people depended on their returning houses and lands to all the families in the community (Neh. 5:1-17). In that case, Nehemiah and the people managed to reverse the growing gap between the rich and the poor.

Will people turn again toward the common good in our time? Will this society make a path for recovery to all classes of people who have suffered losses? Or will the economically powerful tighten their grip, leverage their advantages, and make recovery difficult or impossible for the unemployed, the foreclosed, and the uninsured? Basil of Caesarea preached, "If one who takes the clothing off another is called a thief, why give any other name to one who can clothe the naked and refuses to do so? The bread that you withhold belongs to the poor; the cape that you hide in your chest belongs to the naked; the shoes rotting in your house belong to those who must go unshod" (“Homily on Luke 12:18”).

Thursday, July 23, 2009

Economic Recovery for All 2: Causes and Effects of the Current Crisis

THEOLOGICAL REFLECTION ON THE ECONOMY
A Working Paper for North Carolina United Power
from an Interchange Among Theological Educators
July 2009


I. The Economic Crisis 2008-2009: People are losing their homes. Banks are closing. Businesses are failing. Workers are losing jobs. Families are uprooted.

A. Causes
1. Artificial inflation of housing prices created an illusion of wealth.

2. Greed and irresponsibility made financial institutions eager to sell “creative” and high-risk investment products.

3. Government deregulation of financial markets allowed risky experimentation, gigantic financial conglomerates, and diminished consumer protection.

4. The complexity of financial instruments which divided, bundled, and resold mortgages again and again, led to confusion about their real value and to lack of accountability for following best practices in making loans.

5. Households overextended their debt as consumer acquisitions outpaced income.

6. Overinflated housing prices, the justifiers of high levels of debt and consumption, finally crashed (the "housing bubble" burst).

B. Effects
1. Many households faced foreclosure and the loss of shelter.

a. People owed more than their houses were worth.

b. Many people lost jobs in the weak economy and could not keep up payments.

c. Many households faced increased interest rates from Adjustable-Rate Mortgages (ARMs).

2. Growing numbers of foreclosures led to a crisis of solvency in the financial institutions holding these mortgage-backed securities.

3. The crisis in the financial institutions led to a crash in the stock market.

4. The value of pensions, homes, and investments lost value dramatically, affecting retirees, institutions depending on endowments, homeowners, investors, and the economy in general.
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