On: Left with Nothing

[harrytuttle]

As an English atheist, possibly surprisingly, I think Islam is right regarding interest. Unfortunately wrapping it up in mumbo jumbo doesn't give it any credibility. Also it isn't really related to the article.

[yannis → harrytuttle]

If you want to borrow money to buy a car for example from an Islamic Bank they 'buy' the car and the sell it to you in so many installments at a profit. Same as charging interest by wrapped in 'profit' which is allowed in the Koran. Pathetic and hypocritical and the first to lock you in if you can't pay.

[harrytuttle → yannis]

I said I agree with the idea, not necessarily the implementation of it!

[yannis → harrytuttle]

Sure, I thought as much. I also agree with the ideal!

[easyfrag → harrytuttle]

And banks will charge "fees" in lieu of interest to their Islamic customers for products like mortgages

[bsullivan01 → harrytuttle]

At least inflation has to be added, and that's without calculating any risk. Otherwise I'll borrow from you $100K and return it 30 years later

[harrytuttle → bsullivan01]

Not really.

a) growth isn't required in all economic models so inflation isn't necessarily valid.

b) goods and services are perfectly good interest. Not that you'd have to borrow it if interest wasn't profitable (it would drive asset value down).

c) risk is irrelevant if lending isn't required.

you're too in the bank and growth model mindset. It doesn't work like that everywhere.

[venomsnake → bsullivan01]

Depends. The money in the current system is created with debt. If you remove it than it may lead to some interesting stuff.

[hansjorg → bsullivan01]

I think usury refers to 'excessive and immoral' rates in this context.