if the world was implementing islamic economics & banking, none of such global meltdown would have occurred…baseless credit, baseless speculation, short-selling doesnt exist in Islamic finance as far as my knowledge is http://www.arabnews.com/?page=6§ion=0&article=115404&d=13&m=10&y=2008
Yeah correct… if fact those banks are called “charity shops” and they give to you everything you want for free
sumz Wrote: ------------------------------------------------------- > if the world was implementing islamic economics & > banking, none of such global meltdown would have > occurred…baseless credit, baseless speculation, > short-selling doesnt exist in Islamic finance as > far as my knowledge is > > http://www.arabnews.com/?page=6§ion=0&article= > 115404&d=13&m=10&y=2008 — very true
hopefully this is sarcastic
Hmm I’ve heard that banks don’t charge interest but instead take a stake in the business?
From my understanding interest in not allowed under Islamic law. So the managers, in order to atone for buying interest paying securities must give money to “religious charities”.
Again, hoping this is a sarcastic thread…
All the weirdo ideas come out during recessions… “the only solution” hahaha DUN DUN DUNNNNNN
i don’t want that five letter word anywhere near my capitalism
Freedom and islamic law don’t usually go together… Sumz - remember socialism type schemes = equal misery. Yes their are booms and busts, but such as life. Busts are needed to expose inefficiencies.
KrukVT Wrote: ------------------------------------------------------- > From my understanding interest in not allowed > under Islamic law. So the managers, in order to > atone for buying interest paying securities must > give money to “religious charities”. The basic rule in Islamic finance, is that you can’t transfer risk completely to another party. You have to have something on the line in any financial investment. This is probably why the OP made this comment. Since CDS transfer risk from the holder of the bond to the seller of the CDS, that would be banned under Islamic rules. Fixed-interests are banned simply because you transfer the risk completely to the borrower.
Yeah, if we had Islamic finance, we’d be one-product economies, too, with intense poverty. Why didn’t we consider the wisdom of Allah in all of this? After all, the middle east and Islamic nations worldwide are so incredibly prosperous–if only we had submitted to Allah, we’d be rich, peaceful, happy and free like the Islamic world.
that’s what the mullahs would like you to believe, along with a bunch of other worthless ideology. here, let me fire the first arrow into this ‘risk’ theory: if you are a lender, especially if unsecured, your money is at risk of non-repayment. in fact you are more at risk from that perspective than the borrower is. after all, he could just skip town, change his name, and disappear with your money.
religion, economics, politics are three independent pillars of society. any religion that tries to combine the three into one grand ‘governance of society’ theory will only destroy innovation and advancement of human civilization. exhibit A: islam
What exactly will happen to the ME once oil goes away? Will 17th century thinking suddenly save them and make them prosperous? Will they move beyond having .001% of their population controlling 99.999% of the wealth? Because the last time I checked they have no major industry or knowledge outside of oil. They’ve effectively destroyed all innovation and education in Iraq and Iran, both countries which used to be very education and knowledge intensive. When the rest of the world was wallowing in the dark ages they kept going, but now have fallen behind. Instead of building infrastructure, social services, and workable economies with their current riches, they build 1KM high skycrapers for the .001% population to live in. Why reinvest into economies for the betterment of society when you can buy Lamborghinis and other exotic cars? Why deploy capital for making money when you can be 100% consumerist driven. Afterall, why care about anybody else in the society when they have no jobs that feed into oil or economic base? Really, what happens when the world forgets about oil and no more revenues flow into the ME? The uber-rich are fine, they have assets around the world to support themselves. It’s the 99.999% of the ME that are f’d. They’ve got nothing at all to depend on.
I agree with rohufish. Furthermore, personally, I am thankful we have superior firepower relative to people who would try to impose their oppressive ideology on me.
interest/usury is forbidden in other religions too. Would the idea be more acceptable if we say lets all go back to orthodox judaism?
For me, it’s not the interest part. It’s the part about making economics, politics, and religion all the same thing.
sublimity Wrote: ------------------------------------------------------- > For me, it’s not the interest part. It’s the part > about making economics, politics, and religion all > the same thing. You totally missed the point of this thread then. It was started to discuss interest and the risk associated with it, not religion+economics+politics. As for the original topic, Islamic Finance will probably either fail miserably or flourish…time is the major factor. I’m hoping for the latter.
"What exactly will happen to the ME once oil goes away? " The answer to that is easy…They’ll still be trying to kill each other, just no one else will care anymore.