More evil in the love of money

Jesus said "woe to you rich for you have your consolation (Luke 6:24).  Paul said that "love of money is the root of all evil" (1 Timothy 6:10). It is kind of odd, perverse even, that so much attention is given to sexual ethics by some Christians while saying next to nothing about the ethics of wealth and power.

Here is a hint of just how perverse it is to neglect greed. Jesus followed his condemnation of the rich with a dire warning. If you are fat and happy now, you will be hungry and wallowing in despair for an eternity. And let's not forget those who lust for riches. Paul completes his "root of evil" statement by declaring,"some people, eager for money, have wandered from the faith and pierced themselves with many griefs." In other words, lust for wealth causes you to walk away from your faith. Remind me again why the faithful are condemning sexual behavior and all but ignoring the unequivocal threat from greed.

Let me connect a few dots for you. First, let's ask a basic question. Are there reasons to believe that pessimism about Mammon worship is justified? Here is one. Paul Piff and colleagues at the University Michigan just published a study of wealth and ethical behavior in the Proceedings of the National Academy of Sciences.

Seven studies using experimental and naturalistic methods reveal that upper-class individuals behave more unethically than lower-class individuals. In studies 1 and 2, upper-class individuals were more likely to break the law while driving, relative to lower-class individuals. In follow-up laboratory studies, upper-class individuals were more likely to exhibit unethical decision-making tendencies (study 3), take valued goods from others (study 4), lie in a negotiation (study 5), cheat to increase their chances of winning a prize (study 6), and endorse unethical behavior at work (study 7) than were lower-class individuals. Mediator and moderator data demonstrated that upper-class individuals’ unethical tendencies are accounted for, in part, by their more favorable attitudes toward greed.

The researchers used data from a national survey and a series of field studies. Each analysis yielded strong evidence that people higher up the socioeconomic status ladder are prone to all sorts of unethical behavior in business and social settings. Much of the effect was accounted for by their attitudes about greed. The more they valued money and the trappings of materialism, the more likely they were to behave unethically in their dealings with others. Love of Mammon carries with it a contempt for others.

Maybe the rich are possessed by demons. I am sure you know that greed and unethical behavior collapsed our economy and cost millions their jobs, houses and dreams in 2007. You no doubt remember this collapse came 6 years after tax rates were lowered on the rich. Despite all the promises that supply side economics would produce job creation and prosperity for everyone, unethical behavior in the financial and corporate worlds created the worst economic period since the Depression. That is a lot of suffering produced by a few thousand Mammonites.

Instead of having to fear for their freedom, the rich got richer. They made a few hollow promises to behave themselves if we give them another chance. The politicians, Republican and Democrat alike, "reluctantly" accepted those promises and even bailed them out. Meanwhile, all rules against the rich corrupting our democracy with money were thrown out by the US Supreme Court.

And what did the rich learn through all of this? Steal harder.

In the financial sector, JP Morgan Chase just lost 2 billion dollars in a flash (and the loss will be closer to 3 billion by the time the dust settles).

JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said the firm suffered a $2 billion trading loss after an “egregious” failure in a unit managing risks, jeopardizing Wall Street banks’ efforts to loosen a federal ban on bets with their own money. The firm’s chief investment office, run by Ina Drew, 55, took flawed positions on synthetic credit securities that remain volatile and may cost an additional $1 billion this quarter or next, Dimon told analysts yesterday. Losses mounted as JPMorgan tried to mitigate transactions designed to hedge credit exposure.

Jamie Dimon and JPMorgan Chase have been carpet-bombing Congress with lobbyists and cash to get rid of the few pathetic regulations that were put in place after the crash of 2007. So Mr. Dimon, how did this massive failure happen on your watch if regulations are not needed because the banks can police themselves. That sounds freaking stuppppiddddd!!! Let the foxes guard the hen houses because what could possibly go wrong. Really, trust us.

“There were many errors, sloppiness and bad judgment,” Dimon said as the company’s stock fell in extended trading. “These were egregious mistakes, they were self-inflicted.”

Oopsie. Tee hee hee. Wink, wink. Nudge, nudge. I am so sorry (we got caught).

The only mistakes were losing money and getting caught. Another elaborate check-kiting scheme known as derivatives trading blew up and billions disappeared in the blink of an eye. And these are not nickel and dime ethical misdemeanors. No, these were capital crime level felonies.

Bloomberg News first reported April 5 that London-based JPMorgan trader Bruno Iksil had amassed positions linked to the financial health of corporations that were so large he was driving price moves in the $10 trillion market.

Trades worth $10 trillion. In other words, we could pay off the federal debt with what these clowns were betting in the Wall Street Casino.

Or how about Chesapeake Energy. It is another warm and fuzzy story about unbridled greed.

Chesapeake Energy is the second largest gas producer in the US. Their CEO, Aubrey McClendon, was just ousted when some of his financial shenanigans came to light. Improper personal loans. A little hedge fund on the side. A wicked compensation deal that paid MeClendon a fat salary, fatter bonuses, hog-worthy stock options, and a piece of every single gas well operated by the company. Think about that for a second. McClendon received four sources of revenue for doing one job - serving himself.

Now comes word of another financial irregularity.

A US report contends that the embattled Chesapeake Energy has “previously unreported liabilities” summing to $1.4 billion resulting from a programme that allowed it to exchange future oil and gas production for cash up front.  

 The Wall Street Journal analysed 10 of the company’s Volumetric Production Payment agreements and projected that the costs associated with the arrangements was far higher than $600 million over 10 years previously estimated.  

The liabilities raise questions about the company’s ability to manage its cash flow, the newspaper said, among the concerns about the No. 2 US gas producer among investors and analysts.

Another oopsie. An $800 million accounting mistake. No worries, mate. Goldman Sachs to the rescue. A $3 billion unsecured handshake loan. Problem solved. Whew. That was close.

Here is a little icing for the cake in case you doubted the ethical bankruptcy of these titans of industry. The CEO of Yahoo just resigned after being exposed for padding his resume.

Good thing we Christians are preoccupied with sex. We do not want the faithful casting aspersion on the greed and corruption of the rich and powerful. That would spoil all the fun.