I'm no economist but I've been thinking about the current crisis in the US credit markets along with the Wall Street bailout and have wondered how the situation could be viewed through an Islamic lens.
For example, many of the practices and approaches which are currently deemed responsible for the crisis (e.g. predatory lending) are clearly prohibited in Islam (see Islamic Perspective on Meltdown in American Markets by Liaquat Ali Khan).
This suggests that Shariah-compliant financial institutions could be insulated from some of the effects of the crisis and in fact, this seems to be supported empirically to some degree (see Asia's Islamic finance sector weathering storm well)
It will be interesting to see if after the dust settles, we will see more growth in the Shariah-compliant sector of the economy (e.g. Islamic bonds could give London leg up in growing sphere of Shariah finance)
I also wonder if some of the more radical voices (like members of the Murabitun who hold that U.S. paper currency is based on usury and advocate bringing back the Islamic dinar) will also gain support in the wake of the crisis.
For some articles on their views see:
Building Sound Economic Foundations (part 1)
The Role of the Market in any Future African Economy
Zakat-The Fallen Pillar
The Islamic Money System
Finally, for a previous post on Islamic finance see:
"if money is the root i want the whole damn tree"
For example, many of the practices and approaches which are currently deemed responsible for the crisis (e.g. predatory lending) are clearly prohibited in Islam (see Islamic Perspective on Meltdown in American Markets by Liaquat Ali Khan).
This suggests that Shariah-compliant financial institutions could be insulated from some of the effects of the crisis and in fact, this seems to be supported empirically to some degree (see Asia's Islamic finance sector weathering storm well)
It will be interesting to see if after the dust settles, we will see more growth in the Shariah-compliant sector of the economy (e.g. Islamic bonds could give London leg up in growing sphere of Shariah finance)
I also wonder if some of the more radical voices (like members of the Murabitun who hold that U.S. paper currency is based on usury and advocate bringing back the Islamic dinar) will also gain support in the wake of the crisis.
For some articles on their views see:
Building Sound Economic Foundations (part 1)
The Role of the Market in any Future African Economy
Zakat-The Fallen Pillar
The Islamic Money System
Finally, for a previous post on Islamic finance see:
"if money is the root i want the whole damn tree"
4 comments:
Early Christendom condemned usury too. The current crisis has many causes...repealing the Glass-Steagall Act in 1999...the failure to nationalize the Federal Reserve banks, etc....the people have been lulled into a dangerous slumber.
It has to be noted that non-sharia banking institutions that did not indulge in the practices of many in Wall Street are also doing quite well. ABC recently interviewed one in Chicago. Loan Sharking (usery) is simply bad long term business regardless of religious leanings.
As the Oilprice is a root reason of the current economic crisis and as all the beautiful bills go to SaudiArabia, shouldn·t you be glad? Even if you don·t like the evil empire there, something will rub off for your heroes
Zero: Thanks for adding to the picture.
Sondjata: Yes, I totally agree.
Anonymous: I don't think that Oil prices are the root reason. It seems pretty clear that the problems are rooted in lending practices.
Secondly, the US actually imports the most oil from Canada not Saudi Arabia.
Thirdly, I'm not a Saudi and am not a fan of the regime
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