I really don't see why derivatives should be banned under the ijara.
The main goal of any investor is to make money in whatever religious ruling power you trade in. If there is trade they should be risk and money to be make. In case you lose money due to the fact that you have a too big exposure then it is your own fault: you haven't read my blog. More so, the derivatives products are all back by underlying assets so a banned of derivatives trading should also be as a banned on stock trading or any single volatile asset.
I do not agree with the new regulations proposed by the Bahrain-based Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) and I think they should be an OCC instead of an interdiction to trade derivatives, then we can talk about best practices.
http://www.reuters.com/article/idUSLDE60J0WF20100120
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do you feel they are trying to isolate their markets from outside influences due to the mistakes made in the rest of the world concerning the recession or are they truly using religion as a tool to control their people?
ReplyDeleteDoug
Anything which can help to control the mass population is a tool in most of those countries, where democracy is not yet fully established. New regulations will help control the income and make it hard to the middle class to move up, and the lower class to be a middle class.
ReplyDeleteMost of their biggest holding is with outside companies or in euro dollars. So a lower level restriction will not affect anything. A restrictions must come from the top to be effective, most of the time.
In conclusion,they cannot isolate their market from the North, and their are wasting time implementing laws.