Posted on 05/21/2012 7:55:28 AM PDT by LSUfan
Every once in a while we come across a story that is really outrageous. Some or outrageous because they are inaccurate. Others are outrageous because they are simply offensive.
Today we bring to you an article from John King, an attorney with one of Irelands most prominent law firms, in which he makes the case that the financial crisis that occurred in the West, the US housing market in particular, would never have happened if the US markets were Shariah-compliant.
(Excerpt) Read more at shariahfinancewatch.org ...
We can all see the damage that the Zero Interest Rate Policy (ZIRP) is doing to our economy. In truth, and economy CANNOT be sustainable unless the price of money is as free for the market to negotiate as the price of wheat or the price of labor.
We are starting to see some of the disruptions from ZIRP. For example, most retirees who planned on living the remainder of their lives off their interest income are now forced to invest in risky instruments or else are consuming their life savings at a far faster rate than they planned.
Long term consequences of ZIRP is how it distort the perceived costs and returns on long-term projects. In fact, it induces people to purchase assets they normally would think is not sustainable. In fact, when interest rates return to normal those projects are in fact not sustainable and bankruptcy is the result.
Sharia-compliance finance prohibits charging or paying interest. However, in truth, there are ways found to compensate the lender in ways that have the effect of paying interest. These are the fees for the loan.
In a free market, few people would put their money at risk if they could not get compensated for it. No lending = no borrowing = greatly reduced business investment = no jobs = no growth.
This should have FINOs nodding in agreement. Thanks LSUfan.
Do you want us to go back in there, kick the s*it out of them, and take everything back over?.
No need - they're doing a splendid job of kicking the s*it out of themselves. In any case, you'd only be giving them grudge material for the next 700 years. Like they don't have enough already.
On second thought - leave Guinness and the single malt distilleries out of it and you’ve got a deal.
And while you’re at it, take Sinnead O’Connor. Please.
Aren’t the “single malt distilleries” all in Scotland?
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