Let’s spend some time discussing wealth and what the Bible has to say on this subject.  It seems our society has become focused on wealth and becoming rich.  We’re constantly reminded in this world that being rich is a good and desirable goal.  We see this in the Wall Street Journal and listed on the Fortune 500. We read about it in daily newspapers and listen to ‘experts’ talk about wealth on programs such as CNN and Fox News.  Most of us invest in the stock market with the hopes that we’ll one day strike it rich or at least receive high enough returns to retire comfortably.  American CEO’s are the highest paid corporate leaders in the world with some earning 400-500 times what the average worker takes home.  If you’re like me and have managed a business whether on your own or for a corporation, then you know that in today’s world, you’re only as good as your last week, month, quarter, year.  Have a good week?  Great, now have a good quarter.  Have a good quarter?  Spend an hour celebrating and then focus on the year.  Have a good year?  Better start planning a strategy to do even better next year.  If you are successful, you receive rewards in the form of raises, bonuses, better benefits, etc.  Have you ever wondered, as I have, whether all the time spent on the pursuit of business/working success is worth the time?  Of course you don’t need to manage a business to feel the stress of the working world today.  All of us are concerned with earning more money, working our way up, receiving better benefits…..and we’re all concerned with job security considering that we could be ‘downsized’, ‘reassigned’ or fired due to ‘synergies’ created by a merger.  Even if you’ve been successful and have reached your financial goals, my guess is that you’ve reached the goal and thought - ‘Is this it?’  It probably hasn’t been as satisfying as you thought it would be.  Regardless, it’s as though we’re all on this big treadmill that seems to be going faster and faster and we can’t get off and we can’t slow down.  It’s as though someone is dangling a carrot in front of our faces that we can never quite reach.  What does the Bible teach us about the pursuit of wealth.

“But if we have food and clothing, we will be content with that. People who want to get rich fall into temptation and a trap and into many foolish and harmful desires that plunge men into ruin and destruction. For the love of money is a root of all kinds of evil. Some people, eager for money, have wandered from the faith and pierced themselves with many griefs.” (1 Timothy 6:8-10)

The Bible teaches us that money isn’t the root of all evil (as is often quoted), but the love of money.  If you believe that everything in the world is the Lord’s and you’re simply a steward of His possessions, then you won’t fall into the devil’s trap of falling in love with money and wealth.  If you begin to view your money as only yours, to do with as you please, then you are starting down a dark path....which is what we, as a nation, have done.

Since public corporations seem to make up over 90% of what we read about in the business world, let’s take a moment and look at the decisions they make and why they make those decisions.  As I’ve mentioned before, I have some experience with corporate decision-making.  I’ve never been a CEO of a company, but like many others in middle management, I’ve had to execute senior management decisions within my area of responsibility.  Let’s start by asking some basic, high level questions.  What is the purpose of a corporation? What are the goals of a corporation?  What influences the majority of high level decisions within a company? 

Don’t worry, I won’t go into a long-winded discussion on microeconomics and financial statements.  For our purposes here, we’ll stick to the basics.  Obviously, public companies are focused on their stock price and the company’s return to shareholders.  Companies initially issue stock in return for capital (cash) that they can use to grow their business, invest in research, etc.  They want their stock price to rise so that their shareholders are satisfied and that, in return, benefits the employees of the company in many ways…increased salary, bonuses, stock options, career advancement, etc.  The stock price is the focus of any publicly traded company.  It is certainly the focus of anyone who invests in stocks or mutual funds.

Have you ever thought about what really affects stock prices?  The answer is ....just about everything.  Obviously, how well a company is performing financially and operationally impacts their stock price.  The problem with stocks is that there are many other things that affect their prices - scandals, fraud, wars, terrorist activity, the overall economy, the overall stock market, interest rates, inflation, Federal Reserve decisions, Federal legislation, etc.  If a big investment institution (private equity funds, hedge funds or the big Wall St. banks) buys or sells a big chunk of stock in a company, they have the power to raise or lower the price to some degree (regardless of what you're told, all investors are not the same).  Mergers & acquisitions can have a big impact on stock prices.  So, even though our society consistently tells us that we should invest in stocks because of past history (we always hear about past 5, 10, 30 years trends), does the past really give us a true indication of the future?  As it relates to something as risky as the stock market, the past has absolutely no bearing on the future.  Yes, you can see trends, but you can't see if a war is going to break-out tomorrow.  You can't see if a terrorist event is going to happen tomorrow.  Did 9/11 affect your checking account or savings account?  Did the value of your CD's drop?  No. How did your stocks do?  We are blindly following flawed advice that says you have to invest in stocks in order to save for retirement.  The has invested trillions in the stock market.  Where is our faith?  Are you placing faith in things of this world or your Creator?  What do you think God sees when He looks at the stock market?  I have an idea - greed.  The truth is that the stock market is a house of cards and it's going to fall.  How?  I don't know specifically, but remember, only one card (a negative event) needs to fall for the whole house to come down. 

For simplicity, if we were to point to one, overriding factor in a company’s stock price, I believe it would be growth.  Stock analysts always point to a company’s sales/revenue growth, profit growth, prospects for growth, hindrances to growth, etc. when discussing stocks.  Sales and revenue must continue to grow at an acceptable level (10%, 20%, 30+%), profits must grow, etc……in order for investors to continue to invest in a company’s stock.  If you’re a CEO of a publicly traded company, you’re focused on (among many other things) how to grow your business through internal growth, acquisitions, etc., while keeping costs as low as possible. You're constantly under pressure to find ways to grow your business.  You can't just run a nice profitable business, you must get bigger.  The treadmill never stops running. 

So, with these things in mind, let’s answer the questions above.  What is the purpose of any corporation?  We could say that companies provide products and services that benefit us…and that’s a good thing.  This is certainly true for some companies, but the one overriding purpose for any publicly traded company is to make money.  If you aren’t profitable, how long will your investors continue to support you?  I think the Dot Com bust of 2000 showed us the answer.  If you have a great idea, you better turn the idea into a profitable business within a couple of years (depending on the industry) or you’re going to find yourself under ever increasing pressure to do so.  What are the goals of a corporation?  Every publicly traded company has operational and financial objectives that will meet or exceed expectations.  They must meet sales, revenue, cost and profit expectations or their stock could decline.  What influences decisions within the company?  Most high level decisions revolve around whether the outcome of these decisions will have a positive or negative impact on these same metrics – sales, revenue, costs and profits.  If we step back for a moment and really think about what drives corporations and their decisions, we see one overriding theme - the pursuit of money.  What does the Bible say about spending our lives in pursuit of money? God's Word is clear - pursue God, not money.  The love and pursuit of money will lead you into all kinds of evil.  If you're wondering how corporations can do evil, you won't have to look far.  Remember, the measuring stick is not the world - don't compare yourself or your business to the world and think you're a-ok.  The measuring stick is God's Word.  Pollution, deforestation, fraud, embezzlement, bribes, 'creative' accounting, oppressing the poor, pursuit of profits above all else, etc.  Think about the structure of a corporation.  The people at the top are usually wealthy, while the people at the bottom struggle to get by.  In fact, corporations are consistently rewarded for paying the lowest wages possible (an example is outsourcing) regardless of whether they are doing fine financially.  Yes, people with more responsibility should make more, but not 400 times more and not at the expense of others.  Every time you read about layoffs, outsourcing or 'downsizing', who usually loses their jobs? Those at the bottom of the corporate ladder are usually the most affected.  Who usually benefits?  The people at the top.  Wall Street normally applauds these 'cost reductions'....which many times leads to more compensation to those making these decisions.  They never mention the lives that are turned upside down because of these decisions.  For weeks now (April 2007), I have been reading about how the downturn in the subprime market is causing a spike in foreclosures and mortgage company bankrupcies.  Many articles have discussed how this could trickle down to affect many areas of the economy.  Not one article I have seen (in the Wall St. Journal or other publications) has discussed the impact to the families who are being evicted due to the foreclosures.  I'm sure their are many reasons for the problems - people taking on too much debt, economic downturn in some areas, overzealous mortgage salespeople & companies, etc., but this is how the world looks at things. Very rarely do we read about the human cost. This cost doesn't affect the bottom line. The corporate working world can chew you up and spit you out.  God tells us this in His Word - you and I are going to have problems throughout our time on earth (work included).  The difference for those that believe in Him is that we know He's watching over us.  We will always receive what we need according to His will.

‘Keep your lives free from the love of money and be content with what you have, because God has said, "Never will I leave you; never will I forsake you."’ (Hebrews 13:5) 

With all of this said, let’s ask the toughest question of all – is it easy to run a company in today's world based on the principles in God’s Word?  I believe the short answer is no.  Why?  Because the #1 focus of most companies is the pursuit of money.  If you were to listen to any publicly traded company’s quarterly earnings call, would the CEO begin talking about how they were following God’s plan?  Would the CEO talk about how their success this quarter contributed to the company’s ability to give back to God?  It seems a little strange to us to even suggest something like this.  In today’s world, we inherently want to separate our working world from our personal world.  We don’t think in terms of blessing and cursing as it applies to the companies we work for.  Why?  We like to think that if I live my personal life according to God’s Word, it’s ok if I let things slip when making decisions for my company.  The truth is that God asks us to stand against our enemy in every aspect of our life.  One of the benefits of forming a corporation is that employees of the corporation are shielded from liability (this changed to some degree with the Sarbanes-Oxley legislation, but we won’t go into details here).  If a defect on a car causes an accident, the people involved in the accident don’t personally sue the CEO of the company who built the car, they sue the corporation.  This is one of the ‘benefits’ of creating a corporation.  In the same way, we feel that God (I was certainly included) wouldn’t ask us to stand against such overwhelming worldly thinking and actions at work.  What if we were fired because we didn’t conform?  Instead of relying on Him, we rely on ourselves and worry about how the world will react.  Never forget, the world wants you to conform to its way of thinking and our workplace is just another conduit for our enemy to get to us.  The Bible tells us that we must stand against our enemy - always.  God is always faithful and will provide for us.

Let’s look at an example.  If you’ve read my initial letters, then you know that I spent a few years working for a cable company.  When our company launched our services in , we had a few ‘adult’ channels as part of our channel lineup.  I simply accepted this as part of being in this business.  A couple of years after we launched, our company decided to launch ‘level 2’ adult channels.  These are more graphic and the price is higher.  I held out on offering these channels until we were the only division without them.  Eventually, I gave in because ‘every other division offered them’ and they offered us more ‘revenue’.  Once the Lord began to change me, I no longer viewed these channels as ‘revenue’.  I viewed them as they truly were – a way for our enemy to lead people down dark paths.  What came to mind for me was this – a family man who has never viewed pornography sees an ad for the Playboy channel late at night while watching ESPN.  He decides to order one movie…which leads to other movies and possibly the Internet.  After awhile, his wife discovers that he’s viewing these things and ……you can guess the rest.  All of us are susceptible to this temptation (yes gentlemen, the Lord knows we are weak in this area. He created us to be visual, but only to look at our wives!).  If someone is not a strong believer in God, all they need is a little push to get hooked on this stuff.  Ask any pastor and they’ll tell you how damaging pornography can be.  It can destroy marriages, families, homes. 

“Your eye is the lamp of your body. When your eyes are good, your whole body also is full of light. But when they are bad, your body also is full of darkness.” (Luke 11:34).

Of course, it only starts out with a movie.  This is how the enemy works.  It became very clear that I was going right along with the plan.  I can tell you that it is a very sobering moment when you see that you are being used by the enemy.  Would I have felt responsible if the marriage of someone I knew ended because I decided to show these movies?  Of course not, I’m simply trying to earn a living – who am I to push my values on someone else?  This line of reasoning doesn’t make much sense to me now.  I thought I was doing ok in this world, but I was not strong enough to resist our enemy because I was relying on my own understanding and strength…I failed time and again to resist. 

“Trust in the LORD with all your heart and lean not on your own understanding; in all your ways acknowledge him, and he will make your paths straight.” (Proverbs 3:5-6)

Once I began following the Lord, I was led to this verse:

"Return, faithless people," declares the LORD, "for I am your husband. I will choose you—one from a town and two from a clan—and bring you to . Then I will give you shepherds after my own heart, who will lead you with knowledge and understanding.” (Jeremiah 3:14-15)

Let’s briefly take a look at a few Bible verses that comment on wealth and the pursuit of wealth:

“Then Jesus said to his disciples, I tell you the truth, it is hard for a rich man to enter the kingdom of heaven. Again I tell you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of heaven." (Matthew 19:23-24)

Is Jesus telling us that if you are wealthy it is impossible to enter God’s kingdom?  No.  It is difficult for wealthy people to enter heaven because in most cases, wealth and the pursuit of riches becomes their master.  They put their pursuit of wealth ahead of God and money becomes the focus of their lives.  Are we warned about this? Absolutely.

"No one can serve two masters. Either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve both God and Money.” (Matthew 6:24)

How do you know who you’re serving?  It’s not hard.  If God asked you to give up everything as part of His plan for you, could you do it?  Be honest.  Two years ago I could not have done it.  If you seek God and allow Him to change you, money will no longer be your master because He will give you true faith.  The Lord may bless you with wealth, but you’ll view it as His – you will only be a steward of His money to use for His kingdom.  This is how you determine whether money is your master.  Do you view it as yours or His?

We are given many warnings about pursuing wealth:

“Looking at his disciples, he said: "Blessed are you who are poor, for yours is the kingdom of heaven. Blessed are you who hunger now, for you will be satisfied. Blessed are you who weep now, for you will laugh.  Blessed are you when men hate you, when they exclude you and insult you and reject your name as evil, because of the Son of "Rejoice in that day and leap for joy, because great is your reward in heaven. For that is how their fathers treated the prophets. "But woe to you who are rich, for you have already received your comfort.  Woe to you who are well fed now, for you will go hungry. Woe to you who laugh now, for you will mourn and weep.” (Luke 6:20-25)

Don’t let the riches and pleasures of this world keep you from maturing spiritually:

“While a large crowd was gathering and people were coming to Jesus from town after town, he told this parable: "A farmer went out to sow his seed. As he was scattering the seed, some fell along the path; it was trampled on, and the birds of the air ate it up. Some fell on rock, and when it came up, the plants withered because they had no moisture. Other seed fell among thorns, which grew up with it and choked the plants. Still other seed fell on good soil. It came up and yielded a crop, a hundred times more than was sown." When he said this, he called out, "He who has ears to hear, let him hear." His disciples asked him what this parable meant. He said, "The knowledge of the secrets of the has been given to you, but to others I speak in parables, so that, " 'though seeing, they may not see; though hearing, they may not understand.'

"This is the meaning of the parable: The seed is the word of God. Those along the path are the ones who hear, and then the devil comes and takes away the word from their hearts, so that they may not believe and be saved. Those on the rock are the ones who receive the word with joy when they hear it, but they have no root. They believe for a while, but in the time of testing they fall away. The seed that fell among thorns stands for those who hear, but as they go on their way they are choked by life's worries, riches and pleasures, and they do not mature. But the seed on good soil stands for those with a noble and good heart, who hear the word, retain it, and by persevering produce a crop.” (Luke 8:4-15)

This is another parable that certainly applies to us today:

Then he said to them, "Watch out! Be on your guard against all kinds of greed; a man's life does not consist in the abundance of his possessions." And he told them this parable: "The ground of a certain rich man produced a good crop. He thought to himself, 'What shall I do? I have no place to store my crops.' "Then he said, 'This is what I'll do. I will tear down my barns and build bigger ones, and there I will store all my grain and my goods. And I'll say to myself, "You have plenty of good things laid up for many years. Take life easy; eat, drink and be merry.” "But God said to him, 'You fool! This very night your life will be demanded from you. Then who will get what you have prepared for yourself?' "This is how it will be with anyone who stores up things for himself but is not rich toward God." (Luke 12:15-21)

What does the world tell us?  Acquire all the money you can.  There is certainly nothing wrong with having a reserve for tough times, but we are constantly told to store up as much as we can.  This doesn’t mean that you should spend everything you earn, but seek God’s guidance on how He wants to use what has been given to you.  Don’t store up a lot of money and then sit back and take it easy.  We don’t know what’s going to happen tomorrow, so stay close to the Lord, do not put your faith in money.

"Whoever can be trusted with very little can also be trusted with much, and whoever is dishonest with very little will also be dishonest with much. So if you have not been trustworthy in handling worldly wealth, who will trust you with true riches? And if you have not been trustworthy with someone else's property, who will give you property of your own? (Luke 16:10-12)

We’re being told here that if you are faithful with a little, the Lord will give you more to manage for him…and not just wealth, but ‘true riches’.  He will give you more authority to carry out His will.  Most importantly, we are told that you cannot serve God and money.  Don’t think that making lots of money and giving small amounts on Sunday means that you are serving God.  If you are truly following the Lord, you are tithing on Sundays and giving when and where He asks you to give.  Your focus is on Him.

There are many lessons given to us in James chapter 4.  One of them speaks directly to us today regarding how we are living our lives.  We pursue worldly business and things with no thought about what the Lord wishes us to do.  We don’t ask God for what we need, we try to do it all ourselves.

“What causes fights and quarrels among you? Don't they come from your desires that battle within you? You want something but don't get it. You kill and covet, but you cannot have what you want. You quarrel and fight. You do not have, because you do not ask God. When you ask, you do not receive, because you ask with wrong motives, that you may spend what you get on your pleasures.

You adulterous people, don't you know that friendship with the world is hatred toward God? Anyone who chooses to be a friend of the world becomes an enemy of God. Or do you think Scripture says without reason that the spirit he caused to live in us envies intensely? But he gives us more grace. That is why Scripture says:

   "God opposes the proud

      but gives grace to the humble."

Submit yourselves, then, to God. Resist the devil, and he will flee from you. Come near to God and he will come near to you. Wash your hands, you sinners, and purify your hearts, you double-minded. Grieve, mourn and wail. Change your laughter to mourning and your joy to gloom. Humble yourselves before the Lord, and he will lift you up.

Brothers, do not slander one another. Anyone who speaks against his brother or judges him speaks against the law and judges it. When you judge the law, you are not keeping it, but sitting in judgment on it. There is only one Lawgiver and Judge, the one who is able to save and destroy. But you—who are you to judge your neighbor?

Now listen, you who say, "Today or tomorrow we will go to this or that city, spend a year there, carry on business and make money." Why, you do not even know what will happen tomorrow. What is your life? You are a mist that appears for a little while and then vanishes. Instead, you ought to say, "If it is the Lord's will, we will live and do this or that." As it is, you boast and brag. All such boasting is evil. Anyone, then, who knows the good he ought to do and doesn't do it, sins.” (James chapter 4)

We must overcome the world and our focus on worldly things through faith in Jesus Christ:

“You, dear children, are from God and have overcome them, because the one who is in you is greater than the one who is in the world.” (1 John 4:4)

“This is love for God: to obey his commands. And his commands are not burdensome, for everyone born of God overcomes the world. This is the victory that has overcome the world, even our faith. Who is it that overcomes the world? Only he who believes that Jesus is the Son of God.” (1 John 5:3-5)

"I have told you these things, so that in me you may have peace. In this world you will have trouble. But take heart! I have overcome the world." (John 16:33)

And finally, we are given warnings to those who are focused on wealth in this world and those that have taken advantage of the poor:

“Now listen, you rich people, weep and wail because of the misery that is coming upon you. Your wealth has rotted, and moths have eaten your clothes. Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days. Look! The wages you failed to pay the workmen who mowed your fields are crying out against you. The cries of the harvesters have reached the ears of the Lord Almighty. You have lived on earth in luxury and self-indulgence. You have fattened yourselves in the day of slaughter. You have condemned and murdered innocent men, who were not opposing you.” (James 5:1-6)

As you think about these things, remember what we’re told from this passage in Luke.  No matter what you have done to this point, it’s never too late to allow God to change your life and accept His offer of salvation - until you leave this world.  Once we die in this world, there are no more chances.  The Bible is clear on this subject.

"There was a rich man who was dressed in purple and fine linen and lived in luxury every day. At his gate was laid a beggar named Lazarus, covered with sores and longing to eat what fell from the rich man's table. Even the dogs came and licked his sores.

 "The time came when the beggar died and the angels carried him to Abraham's side. The rich man also died and was buried. In hell, where he was in torment, he looked up and saw Abraham far away, with Lazarus by his side. So he called to him, 'Father Abraham, have pity on me and send Lazarus to dip the tip of his finger in water and cool my tongue, because I am in agony in this fire.'

 "But Abraham replied, 'Son, remember that in your lifetime you received your good things, while Lazarus received bad things, but now he is comforted here and you are in agony. And besides all this, between us and you a great chasm has been fixed, so that those who want to go from here to you cannot, nor can anyone cross over from there to us.'

 "He answered, 'Then I beg you, father, send Lazarus to my father's house, for I have five brothers. Let him warn them, so that they will not also come to this place of torment.'

 "Abraham replied, 'They have Moses and the Prophets; let them listen to them.'

 " 'No, father Abraham,' he said, 'but if someone from the dead goes to them, they will repent.'

 "He said to him, 'If they do not listen to Moses and the Prophets, they will not be convinced even if someone rises from the dead.' " (Luke 16:19-31)

I just read a couple of articles about why Americans are never satisfied with what we have.  Even though we are the richest nation on earth, we want more.  It’s always interesting to read secular articles try to explain these things when the Bible does a much better job in one sentence.  In the fallen world in which we live, material gain is never good enough.

“…..the eyes of man are never satisfied.” (Proverbs 27:20)

In the end, we all need to remember why we’re here.  We’re not here to live nice, comfortable lives and focus on gaining material wealth.  We are here to love and serve our Creator in a spiritual war…just as He loves us.  If our enemy has diverted you from your true purpose through worldly pursuits, it’s time to ask God for forgiveness and start on His path for your life.  Remember, if you’re reading this, you still have time.

Lastly, it doesn’t take a doctoral degree to see what most corporations focus on – the pursuit of money and power.  There’s not a whole lot of difference between corporations and governments in the world today (both are in the business of power and money).  In some areas, they actually seem to be blending together. Where is this pursuit of money leading us?  The above verses spell it out quite clearly.  In addition, the Bible tells us that we will not be able to buy or sell unless we accept the mark of the beast.  While I don’t believe that the mark of the beast is technology related (previous post – this is a spiritual mark), I do believe that technology will certainly come into play.  How else could the coming political beast prevent buying and selling?  By removing cash from the world’s economic system.  To buy and sell, you will need to be part of the ‘system’.  Who will control the ‘system’?  In the physical world, it will obviously be this beast.  In the spiritual realm, satan will be in control of this.  He will put enormous pressure on us to relent and give up – give up our life in eternity.  Now think about this – who is inventing the technology to do this?  Our government?  No.  Private enterprise – corporations.  Also remember that as larger and larger mergers & acquisitions take place, more control is placed in the hands of fewer people.  The same thing is happening as governments grow larger and exert more control over us.  So, fewer and fewer people are controlling more and more of our money supply, economic policies, job opportunities, etc.  Does this make you a little uneasy?  It should.  Bible prophecy tells us that power will be consolidated at the very end of this age.  It’s happening right in front of us.

Again, this isn’t an attack, it’s the truth.  Corporations make decisions on what’s best for the company and pay no attention to whether it’s the correct, Biblical thing to do.  In effect, they are not following God’s plan, but our enemy’s.  If you are thinking that it is impossible to run a company according to Biblical principles in today’s world, then you believe our enemy’s lies – just as I did.  This type of Godless decision-making will ultimately lead to technology that places the world into bondage.  There will remain only one way to get free – Jesus Christ.

If you are someone in a leadership position within a company, ask yourself who you are following.  Which team are you on?  Regardless of what you’ve been told, there are only two teams.  Be honest with yourself.  Don’t let our enemy tell you that your life should be used to make money and die rich.  If you lead a Godless life in the pursuit of money and never ask for forgiveness – never receive God’s offer of salvation, there will be nothing that He can do for you at that point.  You will have rejected all that He did to save you from an eternity in desolation.  Worldly success is a deception - don’t be deceived.  True success is walking in our Father’s perfect will.

“Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope in God, who richly provides us with everything for our enjoyment. Command them to do good, to be rich in good deeds, and to be generous and willing to share.” (1 Timothy 6:17-18)

If you regularly read the business section in your local newspaper or subscribe to the Wall Street Journal, then you have been reading over the past few years about the rise of ‘Private Equity’ and Hedge Funds.  We’re going to spend some time discussing these funds in this post along with an article that was published today in the Wall Street Journal.  If you are unfamiliar with these funds, you’ll gain a little insight into what they are and what they do.  We’re not going to go into details, we’ll simply look at what they do and apply to them what the Bible says about wealth and the accumulation of wealth.  If you are (or were) wealthy and invested in these funds, you are probably starting to feel a little uncomfortable - because you know where this is going……..

Hedge funds and private-equity funds are pools of private investor money.  They typically boast of very high returns and therefore, attract large amounts of cash from very wealthy investors.  There is a high degree of risk involved with these funds, but over recent years, the returns have been large enough to outweigh any perceived risk – and billions of dollars have flowed into them.  Because of the promised high returns, they charge very high fees which are typically 2% of assets under management every year and 20% of any profits.  So, they must be both aggressive and creative in order to make money for themselves and to keep their investors happy…..and from withdrawing their money.  They have made billions of dollars in recent years for themselves and their investors.  We’re going to take a brief look at how they have done this.

Have you ever been called by a hedge fund or private equity fund looking for new investment dollars?  The answer for the vast majority of us is – no.  The reason is that these funds cater to the rich.  They are looking for multi-million dollar initial investments, not the few dollars you and I would put into a mutual fund every month.  So, they are investment vehicles for the rich and are certainly influenced by very rich people.  What does the Bible say about the rich and the pursuit of riches?  We have already discussed this, so I will summarize here.  The Bible tells us that we should seek the Lord and His Righteousness first – other things we need will be given to us.  Do not love money, love the Lord.  He will take care of us and give us all we need.  What do you think the Lord sees when he looks at Wall Street and these funds?  He sees wealthy people pursuing ever more wealth.  Do these funds make money at the expense of the poor or less fortunate?  Yes – they do.  The pursuit of money has blinded us to how this money is made.  This is what we’re going to focus on.  Do you think the Lord approves of this type of behavior?  We’ve already covered this topic in previous posts and the Bible is clear – the love of money is the root of all evil.  It can’t get any clearer than this.  So, if these funds and Wall Street in general are pursuing riches at all costs, how long do you think the Lord will allow it to continue?  Will He allow the rich to continue to exploit the poor forever?  I believe we’re about to find out that the answer is no.  We are beginning to see this today – .  Let’s take a quick look at events that have transpired over the past few months that are beginning to have a very direct impact on Wall Street.

We discussed the current subprime mortgage problem in a previous post.  Let’s do a quick review of what has happened and what may happen in the future as a result of these events.   Subprime mortgages are mortgages that are given to homebuyers with poor credit.  These mortgages typically have much higher overall interest rates than mortgages given to consumers with good credit.  It appears that many of them are not fixed rate loans, but have adjustable interest rates so that the mortgage broker or bank can offer very low initial interest rates that will reset at a much higher rate at a later date.  It’s what many would call a ‘teaser’ rate that looks good to the borrower and sells more mortgages.  As the Federal Reserve has increased the Federal Funds Rate, many of these mortgages have reset at much higher interest rates which have then increased the monthly payments that many of these subprime borrowers must pay every month.  As a result, many of the subprime borrowers have been unable to make these increased payments leading to a very dramatic increase in home foreclosures.

You may be wondering how this has affected Wall Street and hedge funds.  Good question.  Until recently, a housing downturn could have affected Wall Street due to the overall impact to the economy, but now there is a much more direct correlation.  In recent years these loans have been sold by the banks who initiated the loans to the big Wall Street investment banks.  The Wall Street banks have then re-packaged these loans into investment securities called collateralized debt obligations or CDO’s.  These CDO’s have then been bought by many different hedge funds.  In recent years, these have been attractive to investors because they promised high returns and with the housing boom and low interest rates, the risk involved seemed muted.  With the downturn in the housing market and increased interest rates, it has become apparent that many subprime borrowers were issued loans they could not afford.  They can’t refinance because the value of their home has not appreciated (in some cases has depreciated) and interest rates are now higher than their initial rate….so they’re trapped.  With no options, they lose their homes in foreclosure.  We can talk about why this has happened, but the bottom line is that many have taken advantage of the poorest of us in the pursuit of wealth.  I’m sure that the borrowers, brokers, banks and Wall Street have all played a part in this, but the bottom line is that many wealthy people were profiting from these loans.  From what we read, there is very little concern about the people who have lost their homes as a result of this.  The vast majority of articles we read are about how this could affect hedge funds, the housing market and the stock market.  Ever wonder what the Bible says about loaning money to the poor at high interest rates?  The answer is there and remember, the Lord’s Word applies to us today, just as it applied to everyone alive when it was written.

“He who increases his wealth by exorbitant interest amasses it for another, who will be kind to the poor.” (Proverbs 28:8)

The Lord is clear: if you continue to exploit the poor, your wealth will be taken from you.

“You trample on the poor
       and force him to give you grain.
       Therefore, though you have built stone mansions,
       you will not live in them;
       though you have planted lush vineyards,
       you will not drink their wine.

For I know how many are your offenses
       and how great your sins.
       You oppress the righteous and take bribes
       and you deprive the poor of justice in the courts.

Therefore the prudent man keeps quiet in such times,
       for the times are evil.

Seek good, not evil,
       that you may live.
       Then the LORD God Almighty will be with you,
       just as you say he is. “ (Amos 5:11-14)

“He oppresses the poor and needy.
       He commits robbery.
       He does not return what he took in pledge.
       He looks to the idols.
       He does detestable things.

He lends at usury and takes excessive interest. Will such a man live? He will not! Because he has done all these detestable things, he will surely be put to death and his blood will be on his own head.” (Ezekiel 18:12-13)

“The LORD takes his place in court;
       he rises to judge the people.

 The LORD enters into judgment
       against the elders and leaders of his people:
       "It is you who have ruined my vineyard;
       the plunder from the poor is in your houses.

 What do you mean by crushing my people
       and grinding the faces of the poor?"
       declares the Lord, the LORD Almighty.” (Isaiah 3:13-15)

There are many other verses, but we’ll stop there.  Where is this subprime problem leading?  Hedge funds that invested heavily in these subprime securities are closing.  Debt markets are tightening due to investor’s adversity to the perceived increase in risk.  This, in turn, is making it much harder for private equity companies to fund their buyout deals.  This issue, coupled with the housing downturn, is causing the stock market to fall (the NYSE dropped over 300 points yesterday).  It shouldn’t surprise anyone who is spiritually mature that the exploitation of the poor by the wealthy is turning around to bite the wealthy.  Will the current situation end softly or are we facing something much more dramatic?  I believe we are seeing the beginning of the end of the financial dominance of the United States.  What we are seeing is only the beginning as the Lord begins to redistribute wealth from those focused on themselves and the pursuit of money to those who are following Him and His kingdom.

The following article appeared in the Wall Street Journal today.  Take note of who is benefiting from the efforts of private equity and who is suffering.

IN THE TRENCHES
How a Blackstone Deal
Shook Up a Work Force

Layoffs at Travelport,
Dividend for Investors;
'On Pins and Needles'

By IANTHE JEANNE DUGAN
; Page A1

CENTENNIAL, Colo. -- Not long after the Blackstone Group bought Travelport Ltd. last August, workers at the company's office campus here began feeling the squeeze.

Two months after the deal closed, scores of employees were lugging boxes of personal belongings to their cars, having lost their jobs. Under Blackstone's ownership, the travel-reservations conglomerate has laid off 841 people, about 10% of its work force. Blackstone, a private-equity firm, has already recouped all of the money it invested in Travelport.

__________________________________

RAPID PACE

•  The Situation: After Blackstone Group bought Travelport, changes came swiftly for some workers.

•  The Background: To capitalize on their investments more quickly, private-equity firms have been overhauling companies faster.

•  The Bottom Line: Travelport has laid off 841 workers, and Blackstone has already recouped its investment.

_______________________________

Similar scenes have been unfolding at companies around the nation, a human toll of the corporate-buyout boom. Private-equity firms, which say they bring sorely needed financial discipline to poorly run companies, have been slashing costs and extracting profits at warp speed. As the cycle of buying and selling companies has intensified, life in the trenches can be unstable and traumatic.

By the end of 2007, Travelport expects to slash costs by $150 million. Last week, it brought public its online reservations unit, Orbitz Worldwide Inc., using the proceeds to pay off debt. Its Galileo unit, which feeds airline information to travel agents, is the focus of much of the overhaul. Many of the job cuts have occurred at the company's data-operations center here outside , where some jobs have been outmoded by shifts in technology and in the way people buy airline tickets and rent cars, executives say.

John Kliegel, 41 years old, a computer-systems analyst, and his twin, Russell, a technical writer, were both laid off. They're selling the house they share because they can no longer afford it. Don Kleppinger, a 46-year-old software engineer with five sons, lost his job, leaving him without health insurance for several months. Grace Covyeau, 63, who lost her job as a telecommunications engineer, took a part-time job last month making sandwiches and coffee at King Soopers grocery store.

"It came as a shock," says Michael Berson, 49, who lost his job as a data engineer in October, three years after receiving a "Super Star" award for saving the company $1.2 million on telecommunications costs. Mr. Berson has moved to , where he is looking for a new job.

In addition to the 841 layoffs, 1,500 Travelport workers have left voluntarily since the buyout. The company says it has hired 1,582 new workers during that period, and has invested heavily in new technology.

Travelport Chief Executive Jeff Clarke describes the Centennial operation as the "factory" through which thousands of transactions pass every second. "We need to shift into new technologies," he says. "Some require productivity improvements and often will lead to layoffs."

To complete their $4.3 billion Travelport purchase, Blackstone and Technology Crossover Ventures, a , venture-capital firm that now owns 11%, invested $1 billion and borrowed the rest. That debt landed on Travelport's balance sheet. In March, Travelport borrowed an additional $1.1 billion and paid it out as a dividend to the two firms, returning all their money in just seven months.

"This is likely one of the quickest returns of invested capital for a private-equity deal of its size," Travelport's new chief financial officer, Michael Rescoe, said in a May conference call with analysts.

The buyout boom has been lucrative for Blackstone partners and investors, which include large institutions such as pension funds. Last year, Blackstone managed assets valued at about $88 billion and earned $2.27 billion, according to a prospectus for its own initial public offering in June. Its chief executive, Stephen Schwarzman, who resides in a 35-room apartment, made more than $650 million on the offering and retained a 24% stake now worth more than $5 billion.

Such riches raise hackles among laid-off workers. "These investments are helping the fat cats by hurting the little guys," says Ms. Covyeau. "It'll make you sick."

Over the past five years, private-equity firms have bought more than 10,000 companies. This year, through June, 1,399 deals worth $582 billion have been announced, according to data provider Dealogic.

In order to recoup their investments quickly, buyout firms are speeding up everything -- closing deals more swiftly, cutting jobs and restructuring companies faster, and taking them public sooner. They've also been taking big cash payments out of the companies they buy, as Blackstone did with Travelport. These payments, known as "dividend recapitalizations," reached a record $25 billion in 2006, and are on pace to exceed that amount this year, according to Standard & Poor's Corp. In 2001, they amounted to just $1 billion. The payments increase pressure to cut costs.

"Layoffs are far more likely at firms that pay these dividends," says Steven Bavaria, who oversees bank-loan ratings at Standard & Poor's. "Employees left behind are doing more work, looking over their shoulders, feeling stressed."

At a congressional hearing in May, the Private Equity Council, a lobbying group, testified that buyouts often result in long-term job growth. It cited the Carlyle Group's 2005 purchase of auto-parts company AxleTech International Holdings Inc., which grew to 568 from 425 workers after it began supplying parts to military-vehicle makers.

In other cases, job cuts follow buyouts. After buying Hertz Global Holdings Inc. for $15 billion from Ford Motor Co. in late 2005, Clayton, Dubilier & Rice Inc. and a unit of Merrill Lynch & Co. collected a $1 billion dividend, then took the company public. This year, Hertz cut more than 2,000 jobs, or about 8% of its work force.

Last summer, Blackstone teamed up with Carlyle, Kohlberg Kravis Roberts & Co. and other buyout firms to buy VNU, the parent of Nielsen Media Research and ACNielsen, for about $10 billion. In December, the firm announced 4,100 job cuts, about 10% of its work force.

"None of us wants a single job to be cut," says Paul "Chip" Schorr IV, the Blackstone senior managing director who orchestrated the purchase of Travelport and now serves as its chairman. Mr. Schorr, 40, joined Blackstone in 2005 from the venture-capital arm of Citigroup Inc.

The layoffs at Travelport were one of many steps taken to revamp the company. All told, Travelport has reduced operating costs by 6%, the company says.

Before Blackstone bought it, Travelport was operating as the Travel Distribution Systems unit of Cendant Corp., a travel and real-estate conglomerate based in Cendant's founder and chief executive, Henry Silverman, a former Blackstone partner, had cobbled together Cendant's travel unit through a series of acquisitions.

Galileo, which Cendant bought in 2001, gets paid by airlines to feed information about airline schedules, pricing and inventory to travel agents. In addition, it runs the reservations system for United Airlines. Galileo is the largest contributor of Travelport revenue, which totaled $2.6 billion last year.

That business has been suffering. The Sept. 11 attacks curtailed airline travel, as did the outbreak of severe acute respiratory syndrome, or SARS. In 2003, struggling airlines reduced the fees they paid to middlemen such as Galileo.

Cendant also had gotten into the online travel-agency business by buying Orbitz, which competes with Travelocity, Expedia and others. Each time consumers use the site to book reservations for flights, rental cars and hotels, Orbitz collects a fee. As more consumers turned to the Internet for travel planning, the business grew.

But as airlines and hotels began handling reservations through their own Web sites, the middlemen lost business. In 2001, systems such as Galileo had handled 70% of airline reservations, according to Forrester Research, a market-research firm. These days, such systems handle just 50%. Cendant began laying off employees, and in 2005, it decided to split itself into four parts.

Mr. Schorr believed that Cendant hadn't fully integrated the systems behind the travel businesses it had acquired. "It was like having a house with eight kitchens," he says. If it eliminated overlapping systems, he believed, the business could become more efficient. He also saw growing opportunities in foreign markets such as the and .

On Aug. 23, the day Blackstone took over, Mr. Clarke wrote to employees on an internal blog: "For most of us, our jobs won't change." Mr. Clarke, who had become chief executive a few months earlier, previously held senior positions at Computer Associates and at Compaq Computer Corp.

Some employees believed Blackstone's arrival would ease the belt-tightening and stress that had begun under Cendant. "A lot of us thought these layoffs would stop," says Gina Fugazzi, 51, who oversaw the company's voice systems in the "There was no more to cut."

Others had heard enough about how private-equity firms operate to be concerned about their jobs. Ms. Covyeau, the telecommunications manager, says many employees were "aware that the pattern at private-equity firms was streamlining work forces." Anxiety, she says, began rising.

In the blog, Mr. Clarke noted to employees that Travelport intended to re-engineer operations to reduce overlap and to eliminate "activities that are not contributing to our success."

The company decided to overhaul the telecommunications center housed in Centennial. "We are automating work that was done manually," explains Mr. Clarke.

Within weeks of the buyout, at a meeting with employees in Centennial, some managers warned that more cuts were coming. Ms. Covyeau says she began packing her boxes and told a manager: "Please, just give me a severance package and let me out of here."

One morning in October, managers in Centennial sent emails instructing employees to report to various conference rooms and cafeterias. Ms. Fugazzi says her heart sank when she walked into her designated room and found only about 20 people. "I suddenly realized I was in a group getting laid off," she says. A colleague, she recalls, spotted a tray of bagels and coffee and chortled: "Looks like this is our last supper."

A manager told them their jobs were being cut for economic reasons, according to several people who were there. Some employees burst into tears; others stared stoically. "I was devastated," recalls Ms. Fugazzi, who says she had planned to retire in four years. "I had the mentality that if you worked hard, you could keep your job forever."

When they got back to their desks, their email had been disabled. Guards lingered while employees filled boxes with belongings. The company declined to provide written references. In the confusion, some employees say, they were inadvertently given a wrong number to call about benefits -- it was a sex line. A company spokesman says only eight employees received the incorrect number, and the company corrected the mistake right away.

All told, Travelport laid off about 500 people that month, including veterans in their 50s and 60s who say they had good performance reviews and relatively high salaries of about $100,000.

Most of the layoffs occurred at Galileo. Gordon Wilson, Galileo's London-based chief executive, said in a written statement that many of the jobs had been outmoded by technology. For example, travel agents used to connect to Galileo's system by phone. Now, many of them access it via the Internet.

The company offered laid-off employees two weeks severance for every year they worked, according to several employees. Mr. Wilson declined to provide details about the severance packages, which he called "generous."

In December, Travelport announced the acquisition of Worldspan, one of Galileo's chief competitors, for $1.4 billion. At a Christmas party at the Denver Museum of Nature and Science, a Travelport executive assured remaining employees that 2007 would be more stable, according to people who were there.

In January, Mr. Clarke, the chief executive, reorganized Travelport into three brands -- Orbitz, Galileo and Gullivers Travel Associates, a wholesaler of hotel rooms and group tours. The company continued to cut jobs.

Galileo's Mr. Wilson says he has warned employees of "further changes" as the company completes the Worldspan acquisition. The deal could produce about $100 million in cost savings through the consolidation of sales staffs, data centers, and other operations, Mr. Clarke says.

In this year's first quarter, Travelport's profits were up 36% over the year-earlier period, to $157 million. Half of the profit improvement was because of revenue growth, the company says, 25% was because of vendor-related cost reductions and 25% was from productivity improvements, including reductions in the work force.

Mr. Wilson says Travelport's debt load has made it more urgent to generate cash. "If we can accelerate the reduction of our debt and therefore lessen our interest payments," he says, "no one would expect management to do otherwise."

With the Worldspan merger looming, employees at both companies say they are worried about their jobs. "We are all on pins and needles," says one employee. "Everybody here feels it's only a matter of time."

For many laid-off employees, finding new jobs hasn't been easy. Danny Carrasco, a software developer in his 50s, searched for five months before finding a job at a telecommunications company. Technical analyst Robert Renwick, 30, sent out more than 100 résumés over four months before landing a job at the local school district. He and his wife, a first-grade teacher, put off having children, he says. "I can't believe they would ruin all these lives to make a couple extra pennies," he says.

John Kliegel is earning 33% less as a program manager at a satellite company. His twin, Russell, is juggling job hunting with free-lancing. Mr. Kleppinger, the software engineer, once expected to retire at Travelport. He's now earning 20% less at a new job.

After months of searching, writing résumés and reading books on how to interview, Ms. Fugazzi landed a job with the Colorado Department of Human Services. She earns about $33,000 less than she did at Travelport, counting her old bonus. But the government job, she says, "feels more secure."

Write to Ianthe Jeanne Dugan at ianthe.dugan@wsj.com

 The following article was printed today in the Wall Street Journal (August 7, 2007).  It does an excellent job of describing what has happened to credit markets over the past decade as a result of decisions made by the Federal Reserve and Wall Street investment banks.

JANUARY 7, 2009

His Empire in Tatters, German Billionaire Takes Life

By MIKE ESTERL

Wall St. Journal

FRANKFURT -- Adolf Merckle, one of Germany's wealthiest men, committed suicide after his family business empire began unraveling amid mounting debt, his family said Tuesday.

The suicide of the 74-year-old multibillionaire, whose holding company had roughly €30 billion, or $40 billion, in annual revenue, is one of several deaths of businesspeople tied to the global financial crisis.

The news of Mr. Merckle's suicide came after a consortium of about 30 creditor banks put the finishing touches on a bridge loan of roughly €400 million to the family holding company, VEM Vermögensverwaltung GmbH, which oversees dozens of firms in industries from drugs to cement.

But VEM had to hand over significant collateral to the banks as a prelude to a broader restructuring in the coming months that is expected to strip the holding company of many assets, said people familiar with the matter.

Mr. Merckle, who shied away from the spotlight, inherited his family's pharmaceutical company in the 1960s and expanded aggressively. He eventually controlled major stakes in Phoenix Pharmahandel, a German pharmaceutical wholesaler with about €20 billion in revenue; publicly listed HeidelbergCement AG, with more than €10 billion in sales; and generic drug maker Ratiopharm International GmbH, with about €2 billion in revenue.

But Mr. Merckle lost hundreds of millions of euros last year in misplaced stock-market bets, said people familiar with the matter. Much of the loss was tied to short positions in Volkswagen AG, in which he wagered that the stock price would fall. Instead, it skyrocketed late last year in what market participants have described as one of the most dramatic short squeezes ever. In a short squeeze, investors who were betting against a company are forced into the market to buy back stock after the price rises.

Bankers say Mr. Merckle also overstretched with highly leveraged acquisitions. He increased his indebtedness in 2007 when HeidelbergCement acquired U.K. building-materials company Hanson PLC for about £8 billion, or $11.6 billion. VEM confirmed late last year it was in refinancing talks with creditors.

HeidelbergCement's share price fell 6.2% Tuesday on Frankfurt's stock exchange to €31.26 a share. That is sharply off its 52-week high of €115.47 reached last March. Mr. Merckle increased his family firm's stake in Germany's largest cement company to about 80% in recent years.

Mr. Merckle's body was discovered Monday night near train tracks outside the southern German city of Ulm in what local police described Tuesday as a "railway accident." There are no signs that anyone else was to blame, they added in a statement.

His family said Tuesday that he had committed suicide. "The distress to firms caused by the financial crisis and the related uncertainties of recent weeks, along with the helplessness of no longer being able to act, broke the passionate family businessman, and he ended his life," the family said in a brief statement.

Refinancing talks with banks in recent weeks proved difficult because creditors were wary of extending VEM new funds without sizable guarantees and Mr. Merckle was reluctant to concede too much control, said people familiar with the matter. Talks were further complicated by the number of banks involved, they added.

In a rare interview last month, Mr. Merckle told the German newspaper Frankfurter Allgemeine Zeitung he had survived "many so-called stock-market crashes" but that he "couldn't calculate a banking and financial crisis of this dimension."

Mr. Merckle's wealth was estimated by Forbes magazine last year at $9.2 billion. VEM also owns stakes in companies making goods ranging from all-terrain vehicles to textiles.

In recent days, Ludwig Merckle, one of Mr. Merckle's four children, took the lead role for the family in negotiating the bridge loan with banks, according to a person familiar with the talks. Ludwig helped his father manage the investments through VEM, taking on an increasingly important role in recent years.

The roughly €400 million loan is designed to give VEM and creditors about three months to craft a broader restructuring blueprint for the Merckle family empire. But swift asset sales are expected to be difficult amid the tough market conditions. A VEM spokeswoman declined to comment Tuesday on any possible asset sales.

The dramatic fall of Mr. Merckle's business fortunes shocked many in Germany's financial community, where he enjoyed a reputation as a savvy investor.

Other Deaths

Thierry Magon de La Villehuchet, 65
Founder, Access International Advisors
Date of Death: Dec. 23

Workers discovered the body of Mr. de La Villehuchet in his firm's New York office. Mr. de La Villehuchet's firm oversaw a fund with assets invested by Bernard L. Madoff, according to a person familiar with the situation. An attorney for the firm told detectives that Mr. de La Villehuchet's firm had lost $1.5 billion in the Madoff scandal.

* * *

Alex Widmer, 52
Chief Executive, Bank Julius Baer
Date of Death: Dec. 3

Overseeing the private bank, Mr. Widmer turned the Zurich firm into a leading bank for wealthy clients. Julius Baer officials said Mr. Widmer's death wasn't linked to problems at the bank.

* * *

Kirk Stephenson, 47
Chief Operating Officer, Olivant Ltd.
Date of Death: Sept. 25

In late September, Mr. Stephenson drove to a rail station about 30 miles from his London home and stepped onto the tracks as an express train approached. Mr. Stephenson co-founded the investment firm in 2006. Olivant began accumulating a 2.8% stake in UBS and leading a revolt to turn around the Swiss banking giant. The UBS shares were put in a Lehman Brothers Holdings account with a proviso that allowed Lehman to use the assets as collateral. With Lehman in bankruptcy Olivant may never recover the assets.

One senior German banker described Mr. Merckle's business style as "down-to-earth and very cost-conscious." The billionaire businessman lived in Swabia, a region of Germany with a reputation for "frugality, where you turn every penny twice," and that's how Mr. Merckle was viewed by many investors, the banker added.

Mr. Merckle voiced distress about the rapidly changing opinions of his business dealings as reports surfaced in recent weeks about his debt problems. "We are being thrown into the same pot as hedge funds," he told Frankfurter Allegemeine Zeitung last month.

But he insisted that his holding company was suffering from a "pure liquidity problem" and that his focus had always remained building up solid businesses.

As Mr. Merckle grew increasingly desperate to keep his empire afloat, he lobbied the regional government in his home state of Baden-Württemberg late last year for temporary financial backing but was turned down.

German police said Mr. Merckle's family reported the businessman missing late Monday, "after he left the house in the afternoon and didn't return as usual." Around 7:30 the same night, a railroad worker noticed a body near Blaubeuren, where Mr. Merckle lived, police added in a statement Tuesday. Blaubeuren is about 100 miles west of Munich in southwestern Germany.

Mr. Merckle's death isn't the first linked to the financial crisis. French financier Thierry Magon de La Villehuchet, founder of Access International Advisors, was found dead in his Manhattan office just before Christmas. He reportedly lost $1.5 billion on behalf of customers in Bernard L. Madoff's alleged Ponzi scheme. Police, who called it an apparent suicide, found a box cutter as well as what appeared to be sleeping pills.

Earlier, an investment-fund executive at Olivant Ltd. in London and a veteran Bear Stearns Cos. manager in New York committed suicide.

Write to Mike Esterl at mike.esterl@wsj.com