Tag Archives: credit crunch

Sales of Canada Savings Bonds put on hold market meltdown


Amid worldwide credit market turmoil, the federal government has postponed sales of one of the country’s favourite investments, Canada Savings Bonds.

A terse message posted on a government website says the 2008 bond campaign, scheduled to start Monday, has been put on hold. And a Department of Finance spokesperson confirmed the postponement.

“There are no bonds on sale at this time,” it says.

“The new sales date, interest rates and bond series will be announced shortly. Rates for outstanding issues of bonds will be announced at the same time.”

‘This is unprecedented as far as I know.’—Evelyn Jacks, Winnipeg-based tax expert

Federal officials would give no reason Tuesday for the delay, which presumably relates to the difficulty of setting interest rates under current conditions.

The bonds, a Canadian tradition since 1946, are backed by the government and promoted as a foolproof way for small investors to save. They are put on sale each fall.

David Gamble, public affairs director of the Department of Finance, which is responsible for CSBs, confirmed that the 2008 campaign has been delayed but would not say why.

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Foreclosures and the Credit Crunch in America: Did God Want You to Get That Mortgage?


By David Van Biema

Pulpit Pimps

Pulpit Pimps

Has the so-called Prosperity gospel turned its followers into some of the most willing participants — and hence, victims — of the current financial crisis? That’s what a scholar of the fast-growing brand of Pentecostal Christianity believes. While researching a book on black televangelism, says Jonathan Walton, a religion professor at the University of California at Riverside, he realized that Prosperity’s central promise — that God will “make a way” for poor people to enjoy the better things in life — had developed an additional, dangerous expression during the subprime-lending boom. Walton says that this encouraged congregants who got dicey mortgages to believe “God caused the bank to ignore my credit score and blessed me with my first house.” The results, he says, “were disastrous, because they pretty much turned parishioners into prey for greedy brokers.”

Others think he may be right. Says Anthea Butler, an expert in Pentecostalism at the University of Rochester in New York: “The pastor’s not gonna say, ‘Go down to Wachovia and get a loan,’ but I have heard, ‘Even if you have a poor credit rating, God can still bless you — if you put some faith out there [that is, make a big donation to the church], you’ll get that house or that car or that apartment.’ ” Adds J. Lee Grady, editor of the magazine Charisma: “It definitely goes on, that a preacher might say, ‘If you give this offering, God will give you a house.’ And if they did get the house, people did think that it was an answer to prayer, when in fact it was really bad banking policy.” If so, the situation offers a look at how a native-born faith built partially on American economic optimism entered into a toxic symbiosis with a pathological market.

Although a type of Pentecostalism, Prosperity theology adds a distinctive layer of supernatural positive thinking. Adherents will reap rewards if they prove their faith to God by contributing heavily to their churches, remaining mentally and verbally upbeat and concentrating on divine promises of worldly bounty supposedly strewn throughout the Bible. Critics call it a thinly disguised pastor-enrichment scam. Other experts, like Walton, note that for all its faults, the theology can empower people who have been taught to see themselves as financially or even culturally useless to feel they are “worthy of having more and doing more and being more.” In some cases the philosophy has matured with its practitioners, encouraging good financial habits and entrepreneurship.

But Walton suggests that a decade’s worth of ever easier credit acted like a drug in Prosperity’s bloodstream. “The economic boom ’90s and financial overextensions of the new millennium contributed to the success of the Prosperity message,” he wrote recently. And not positively. “Narratives of how ‘God blessed me with my first house despite my credit’ were common. Sermons declaring ‘It’s your season to overflow’ supplanted messages of economic sobriety,” and “little attention was paid to … the dangers of using one’s home equity as an ATM to subsidize cars, clothes and vacations.”

With the bubble burst, Walton and Butler assume that Prosperity congregants have taken a disproportionate hit, and they are curious as to how their churches will respond. Butler thinks some of the flashier ministries will shrink along with their congregants’ fortunes. Says Walton: “You would think that the current economic conditions would undercut their theology.” But he predicts they will persevere, since God’s earthly largesse is just as attractive when one is behind the economic eight ball.

A recent publicly posted testimony by a congregant at the Brownsville Assembly of God, near Pensacola, Fla., seems to confirm his intuition. Brownsville is not even a classic Prosperity congregation — it relies more on the anointing of its pastors than on Scriptural promises of God. But the believer’s note to his minister illustrates how magical thinking can prevail even after the mortgage blade has dropped. “Last Sunday,” it read, “You said if anyone needed a miracle to come up. So I did. I was receiving foreclosure papers, so I asked you to anoint a picture of my home and you did and your wife joined with you in prayer as I cried. I went home feeling something good was going to happen. On Friday the 5th of September I got a phone call from my mortgage company and they came up with a new payment for the next 3 months of only $200. My mortgage is usually $1,020. Praise God for his Mercy & Grace.”

And pray that the credit market doesn’t tighten any further.

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