As the Financial Tsunami makes landfall it is destroying everything within its path. It is taking homes, mortgage companies, banks, investment companies, automobile manufactures, small businesses, large businesses, jobs, and anything or anyone else that has built their future on the sinking sands of debt.
“Therefore whosoever heareth these sayings of mine, and doeth them, I will liken him unto a wise man, which built his house upon a rock: And the rains descended, and the floods came, and the winds blew, and beat upon that house; and it fell not: for it was founded upon a rock. And every one that heareth these saying of mine, and doeth them not, shall be likened unto a foolish man, which built his house upon the sand: And the rains descended, and the floods came, and the winds blew, and beat upon that house; and it fell: And great was the fall of it.” Mathew 7:24-27
In the area in which I live a large home builder just went out of business. They cited the current economic environment was too tough for them to survive. It’s true, the present economic environment is very difficult for home builders or anyone else involved with real estate to survive. However, just a few short years ago they were making money hand over fist. Their sales were booming and people were building a lot of homes. What happened to all of the money that they earned when times were good?
I’ll tell you where it went. It went to banks in interest payments.
This builder, like many other large builders, operated from a “stay in debt business model”. It was working from the “microwave worldview” that it must be the biggest builder in the nation, right now!
They used debt to acquire land to be developed into building lots. They used debt, in the form of a business credit line, to ‘ready’ the land for homes to be built. They used debt to build spec. homes to be sold.
This type of operation is understandable (although risky) for a new start up business with a limited amount of cash. However, for many builders and businesses there is no plan to get out of debt, and to operate the business debt free. When profits are earned they are spent on bonuses, and dividend payments. Interest paid to the bank is simply another category on the expense side of the ledger. Sinking Sand.
The travesty of the whole thing is that’s what is taught in most business colleges today. The students are not taught the pit falls of debt. Debt is taught as a cost to do business.
It is more then just bad news for this builder and its employees. There are many people who will suffer the consequences of the builder’s debt. The towns in which land was acquired is now in questions. Will this land sit empty with no use for several years? What about the customers that were in the midst of building a new home; will their home be completed? What about other companies (landscape companies, roofing companies, etc…) that became yoked with this builder; will they have to go out of business too?
I am not trying to pick on this one company, but I am using them as my example of how most businesses, large and small operate.
Debt kills, it destroys, and it enslaves.
With this in mind, think about these statistics.
- About 43% of American families spend more than they earn each year.
- Average households carry some $8,000 in credit card debt.
- Personal bankruptcies have doubled in the past decade.
- Consumers owe nearly $2 trillion. (not including mortgage debt) That’s $18,654 per household
The current national debt is $10,964,973,383,260, and growing. (Just in case you need to know that’s nearly $11 Trillion!) It continues to grow at an average pace of $3.71 Billion per day.
At every level of our society (Government, Businesses, Households) debt continues to grow. It there any wonder why
we are facing judgment? We ignore the warning from God about debt and then we pray for blessings.
Make no mistake about it, the Financial Tsunami has made landfall, and only God knows how far it will go. When it finally does recede we will then begin to see the destruction that it has brought forth upon our land and upon the world. What an opportunity for the Truth of the Gospel of Jesus Christ.