Posted on 05/11/2019 1:46:02 PM PDT by OddLane
Islamic Finance is a scam. It requires weird workarounds to make sense in today's world. Islamic Mortgages are are a scam. They charge you more and add no value. Muslims who follow these rules are far worse off than Muslims who get conventional bank mortgages.
Home buyers tend to be better off and grow equity, have a home that they can leave for the kids, are able renovate as they please, and not be at the mercy of their landlords to put arbitrary rules or kick them out as they please. Some Islamic mortgages are actually conventional mortgages repackaged as halal ones with additional fees on top.
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Another oxymoron.
I attended a seminar on Islamic finance about 8 years ago. It was designed to be different. Other than their abhorrence of interest their really wasn’t any principle about it. I remember thinking it was a scam. The whole purpose of it is to pay some Islamic holy man some money and then he will bless it.
Sharia law compliant. Since Islam is at heart a crude form of socialism, the fact that right to quiet enjoyment of occupancy of a specified tract of real estate is NOT recognized is very much a part of this “legal” construction.
The Declaration of Independence specifies the “Right to Life, Liberty and the Pursuit of Happiness”. The third part of this phrase refers to the right to OWNERSHIP of the rights, title and interest of physical possessions, and this includes the intangible right of occupancy of real estate. In one sense, one does not “own” the physical piece of ground, only the bundle of rights that are assigned to the physical and defined locality. The physical attributes are separate and apart from the individual, and the bundle of rights is conferred upon making a contractual agreement recognized by the governing authority.
People simply do not recognize what an affront to the established US Code of statutes on the national, state, and local levels of government is presented by the attempts to establish Sharia law.
Ruth Bader Ginsburg notwithstanding.
The entire religion is a scam. And this is from someone with a degree in their history and who’s done business in their countries for over 30 years. Arabs are the Semites (unlike most Jews) who ignore basic rules of close co-sanguinity and reap the usual effects. Iranians (Mullahs excepted), on the other hand, possess probably a 30-40 point IQ advantage and should be approached with respect and caution. Shouldn’t equate the two.
For many reasons, Sharia law is patently unconstitutional both at the federal and state level. Thus, Sharia law is illegal and invalid in the U.S. and must be ruled as such and done away with anywhere in the U.S.
Not to mention the legal slavery/prostitution, and child bride laws.
Ann Barnhardt explained this well:
“Let’s say a person buys a $150,000 home on a 15 year mortgage at 5%. Purely for the sake of simplicity, let’s just say zero down. The amortization table shows that over those 15 years, or 180 months, at 5% interest, the monthly payment would be $1186.19 and that the total interest expense paid over the life of the mortgage would be $63,514.28. So, principal plus interest would be $213,514.28 for the $150,000 property.
Now here is an “interest-free” Sharia loan scenario. And bear in mind that I am dead serious here. I’m not making this up.
A musloid walks in to a “Sharia-compliant” lender and tells them that they want to buy a $150,000 property on a 15 year term. The Sharia-compliant lender then looks up what the going INTEREST RATE is. (Uh, Houston, we have a problem.)
In our example, it is 5% on a 15 year mortgage. The musloid banker then calculates the amortization table on a 15 year loan on $150,000 at 5%. (Uh, Houston, we’ve had some sort of major malfunction here.)
He sees that the total interest expense would be $63,514.28. So, the “Sharia-compliant” lender then offers to buy the property at $150,000 and immediately sell it to the customer for . . . $213,514.28. The customer then sets up a note to repay the $213,514.28 in 180 equal monthly payments of $1186.19 at “zero percent”, because $213,514.28 divided by 180 is $1186.19. Voila! Zero interest!
That’s it. I’m not kidding. I’m not making this up. If I was going to make something up, I would make something up that wasn’t totally, completely, laughably stupid.
Um, soooooo, tell me Mister Musloid, what EXACTLY is the $63,514.28 markup? Uh, isn’t that … interest? How was that amount calculated? Uh, didn’t you ping the interest rate market and calculate an amortization table to come up with that number? Yes.
Isn’t the borrower paying the lender for the use of his money over the 15 year term? Yes.”
Good post. Riba/education BUMP!
It’s a legal fiction. Interest is charged but it is not called interest. Fake phony fraud.
Any religion that allows murder is a false religion.
Interesting post there. Kinda reminds of a well-known used car guy in my neck of the woods. He’d buy your $2000 used car for $500. Then he’d present you with $1500 cash as a gift. Just because he liked you.
The whole idea was to avoid paying the vehicle transfer tax. Eventually the revenuers shut him down. Whether or not he went to jail I don’t know.
It's like the annulment scam in the Catholic religion. (I'm Catholic so save your breath)
Yes, basically rolling the interest into the debt on the front end. Instead of buying the house for $200k and paying $250k interest over the life of the loan for example, you pay the bank $450k over time, all principal with no interest component. So instead of paying $450,000, you pay $450,000. But Allah is happy.
See actor Nick Cage saying “You don’t say?!!”
Aka ‘Halal finances’. Muslim idea of business do not suppose any creation of added value. Interests are de-juro unislamic too. That’s considered ‘dirty’ or ‘Jewish’ thing. Their idea of ‘just’ business is mostly about to gain access to a valuable resource and to limit access of everyone else to it and then allowing access for dough.
They denounce usury, so they devise a worse scheme and scam.
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