The Global Financial Crises: Biblical Perspectives on Corporate Finance
AbstractThe global financial crisis that started with the U.S. subprime market meltdown is the most severe since the Great Depression, but it shares much commonality with historic cycles of market manias, panics and crashes. An exposition of the key dimensions of the crisis, such as excess liquidity, leverage, and risk-taking, draws attention to the interplay of unique policy, institutional, and market factors in an evolving global economy. These factors also underlie prevailing attitudes of policymakers, investors, and market institutions that are likely to effect future market upheavals. Expanding on insights from the Scripture, in particular lessons from the experiences of the Old Testament personalities of Joseph and Daniel as well as Biblical teachings on indebtedness and risk-bearing, elements of a framework of Biblical perspectives on market fragilities are discussed. Stewardship principles for the Christ follower, whether in the role of policymaker, corporate manager, or investor, are suggested.