Crisis widens the appeal of Islamic finance

The financial crisis has widened the appeal of Islamic finance as western governments and institutions attempt to tap into deposits by courting Islamic Financial Institutions (IFI), which remain relatively unscathed by the sub-prime mortgage crisis. IFIs comply with Sharia, or Islamic law. One of the fundamental principles is that it is forbidden to sell what you do not own. So unlike other banks around the world, IFIs did not trade bundles of sub-prime mortgages and therefore have no direct exposure to the sub-prime mortgage crisis.

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One response to “Crisis widens the appeal of Islamic finance

  1. Dastagir

    The problem is less economic and more moral. Why do we have to accept / copy models that emanate from the West ? Thatcherism / Reaganomics during the 1980s – followed by Clintonian “Globalisation” and dot.com culture – followed by Bush and his fake-war-on terror – followed by Obamanian Recession and tighter fiscal regulation ! Why do we need others to fix our trajectory ? Are we that barren as a group of people that cannot come with original ideas.

    Do we have an insight to our own problems, or do we need someone to come from outside to make us aware of our problems ! This is the height of social abdication ! That means we are mentally enslaved. What is a flag – but a rag., and the national anthem, a song ! These are superficial gestures.

    Muslim communities (53 in all) must adopt CONSERVATION of RESOURCES and SWADESHI as a cardinal principle. Quickfix modules simply wont work. The pie-charts and bar-charts coloured graphs were fake and fraudulent, the rating agencies and their stars all stand exposed now. It was a huge sham, a ponzi.

    Muslims today are rank consumers., not producers of goods or knowledge capital. That must change. Otherwise talk of sovereignity is superficial and fake.

    High-rise buildings, fly-overs and latest model of cars are not the “sign” of progress. That is a very childish way of seeing development. Muslim societies spent more than USD 5 trillion on “Cars” alone in the past 25-30 years ! In USD 5 trillion, they could have created a superf “Civilisation”. Alas., we only got cars., and our children the skill only to drive them.

    In common terms, we spent USD 5 trillion only to become “Drivers”. What a waste. To each his own. If muslims remain rank consumers, they will be treated as football and kicked all around the ground 24×7 and the punching bag. Muslims never (as a nation) took interest in Economic affairs, production and creation of wealth and fiscal management. They are running their economies on ad-hoc basis. This is not the way to govern nations.

    Where is the creative energy ? Where is the creativity. No original idea. No original story. No original song. No original literature. No original science. No original economics. No original political science.

    Just consumers… rank consumers.. with Mall Economies.

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