Islamic Financial Lesson To World

Hey America, you listening? Time to realise that greed is not always the answer, and just where DID Bernie Madoff put all that money?

Many analysts said that the Islamic financial system would suffer least from the financial crisis. Islam bans the interest rate, which is the basis of wealth and the source of trouble for the traditional world of money.

The interest collection ban and complicated financial tools helped Islamic banks avoid huge losses under the default on debts, which made the world financial system collapse.

“Islamic largest banks enjoy a much more stable position than the largest banks of the USA. My calculations said that the return of sales of four largest banks of the Islamic world was twice as much as those of five largest banks of the United States. The return of assets and the capital of the Islamic banks turned out to be considerably higher in comparison with US banks,” Zarina Saidova, an analyst with Finnam Investment Company told Bigness.ru.

Equality is one of the peculiar features of the Islamic economy, which makes it different from the Western style of the financial system. The Islamic economy is not based on the principle of deriving as much profit as possible. It also excludes all most popular forms of financial speculations which are so typical of the traditional system of economic relations.

As for mortgage services, an Islamic bank and its client agree on the period of the loan, the outpayments and the final price of the house before the loan is issued to the client. If the client is unable to pay for the house, the latter will be put up for auction, and the profit will be divided between the bank and the client. Therefore, both the bank and the client bear responsibility for the deal.

“It is worthy of note that the debt burden of the largest Islamic banks, just like the activity rate to attract borrowed funds, is lower than that of American banks as of 2008. It gives Islamic banks an advantage in terms of credit risks,” Saidova said.

All of the above-mentioned data do not mean, of course, that the crisis has not affected the financial system of the Islamic world. However, the Islamic economy suffered a lot less as opposed to the West.

“The financial indexes of the Islamic banks worsened during the time of the crisis due to the general decrease of the consumer demand and because of massive job cuts in the companies of the world. Low crude prices also affected the situation at this point. Many economically developed Islamic countries are based on crude exports and therefore depend on the fluctuations of prices on black gold,” the specialist said.

“Nevertheless, there were no significant losses reported in their economy. The governments of Islamic states did not have to take urgent measures to rescue their economies. The Islamic banking sector taught a good lesson to the Western financial system at this point,” the expert concluded. link

British Find "NEW" Way of Dealing with CROOKED BANKERS

My Caveat= Now, I’m not condoning violence, but I must admit this article below did make me laugh.

Heads up America, England/Scotland, has created a new way of dealing with crooked bankers and people like Bernie Madoff who caused the financial melt down.

This is an “off topic” post, but I just thought I’d offer it up to all those Americans who lost money in the Bank scams in the USA, or who lost their jobs, homes and livelihood, whilst the bankers all got richer and took huge bonuses for causing the financial melt down worldwide. CHEER UP you poor downtrodden sods, you can get your aggression out by reading this article below.

England has it’s own filthy rich bankers, one, Sir Fred Goodwin, who helped create the British banking meltdown AND then gave himself a huge Pension bonus and took early retirement, just like the American ones did. Ah, but the great British public was having none of that. A new group has been formed, they (You’re gonna love this name) call themselves “ Bank Bosses Are Criminals” (Ok, I think we can all agree on the name being true!) they broke out the windows of Sir Fred’s Million pound Mansion Home (see video below post) and also the windows of his lovely expensive and special Mercedes Benz car. They then phoned in a statement to the local press which said: (You’re also gonna love this as well LOL) the statement said:

"We are angry that rich people, like him, are paying themselves a huge amount of money, and living in luxury, while ordinary people are made unemployed, destitute and homeless. "This is a crime. Bank bosses should be jailed. This is just the beginning."

So, in England,( like in America,) the filthy Bankers were not jailed, but it appears that sad fact is not going down too well with the British public.

Sir Fred Goodwin's home attacked

The Edinburgh home of former Royal Bank of Scotland boss Sir Fred Goodwin has been attacked by vandals.

Windows were smashed and a Mercedes S600 car parked in the driveway was vandalised.
A group angry at bank executives' pay contacted a newspaper claiming to be behind the early morning attack.

There has been widespread public and political anger over a pension payout worth about £700,000 a year to the 50-year-old former chief executive.

Sir Fred took early retirement from RBS last year after the bank needed a £20bn bailout from the government.
.
When Sir Fred stepped down from the post in October, he rejected government pressure to accept a reduction in his package, insisting that changes to the early retirement deal he had negotiated were "not warranted".

The payout was described as "obscene" and "grotesque" by MPs and "unjustifiable and unacceptable" by Prime Minister Gordon Brown.

However, earlier this month it emerged that the bank was paying about £290 per month for security, which included CCTV monitoring of the house and security staff for Sir Fred.

Three smashed ground-floor windows of the stone villa were clearly visible. In the driveway, the rear window of a dark-coloured Mercedes saloon was smashed, as well as the nearside rear passenger window.

A statement was issued to Edinburgh's Evening News newspaper on Wednesday morning by a group which claimed it was behind the attack.

It said: "We are angry that rich people, like him, are paying themselves a huge amount of money, and living in luxury, while ordinary people are made unemployed, destitute and homeless.

"This is a crime. Bank bosses should be jailed. This is just the beginning."

"Our inquiries are at an early stage and we are appealing for anyone with information about this incident to contact us," he said.

(Somehow I don’t think anyone will be talking, as in the news report I saw on television, little old ladies were out walking down the street and being interviewed and wondered why it hadn’t happened already LOL)

VIDEO BELOW



Now I bet you are all wishing Madoff lived in Scotland...........