http://debate.instablogs.com/ Comments - Latest Popular Stories powered by Instablogs Community. http://www.instablogs.com/site-img/insta-slogo.gif http://debate.instablogs.com/ en-us Instascript 2.0 http://www.instablogs.com Tue, 12 May 2009 10:59:47 +0000 http://candide33.instablogs.com http://candide33.instablogs.com Nuya Bidness It is exactly the same, the bank owns the property until the last payment is made. Whether you call it 10% interest or just jack up the price of the property by 10%, the bank gets the same amount. How would that work for farmers? they can’t sell their crop to the bank before it is grown, so where are they going to get the money to grow the crop?

]]> Tue, 12 May 2009 00:00:00 +0000 http://onehumanityplease.instablogs.com http://onehumanityplease.instablogs.com OneHumanity Please
Well, that is a very good argument you brought up. OF course, farmers can’t keep their farms with banks. In the earlier days, peasants use to do the same. This is like going back to medieval ages.

In my view, a practical option to this is micro - financing. Grameen Bank of Bangladesh gives loans of very small amount to the poor people of the country. Their loans are like 100 taka (the local currency there), 500 taka which are helpful to the poor farmers for their survival. But, there is an interest charged to it, and that is a whopping 20%!! That’s the highest I’ve ever heard but still that is a very good way to help the poor. It’s founder even got a Nobel Peace Prize.

Also, their preference while giving a micro - loan is to women, so that people would not abuse women at home, which is kind of a high occurrence in the Third World countries.]]> Hi Nuya!



Well, that is a very good argument you brought up. OF course, farmers can’t keep their farms with banks. In the earlier days, peasants use to do the same. This is like going back to medieval ages.



In my view, a practical option to this is micro - financing. Grameen Bank of Bangladesh gives loans of very small amount to the poor people of the country. Their loans are like 100 taka (the local currency there), 500 taka which are helpful to the poor farmers for their survival. But, there is an interest charged to it, and that is a whopping 20%!! That’s the highest I’ve ever heard but still that is a very good way to help the poor. It’s founder even got a Nobel Peace Prize.



Also, their preference while giving a micro - loan is to women, so that people would not abuse women at home, which is kind of a high occurrence in the Third World countries.

]]> Tue, 12 May 2009 00:00:00 +0000 http://candide33.instablogs.com http://candide33.instablogs.com Nuya Bidness


Please tell me more about the loans for women, I would really like to know.]]> I agree that 20% sounds outrageous since the amount the farmer gets for a product is a very small percentage of what the produce actually sells for. There are a lot of middle men involved between the time a seed goes in the ground and the food ends up on someone’s dinner table. The bank cannot be owner of every gallon of fuel in every tractor and every cardboard box in every refrigerated truck. I don’t see how it would work in any business where start up costs have to be covered.







Please tell me more about the loans for women, I would really like to know.

]]> Wed, 13 May 2009 00:00:00 +0000 http://onehumanityplease.instablogs.com http://onehumanityplease.instablogs.com OneHumanity Please
Even if interest is charged by banks today, but that is how they run. Let’s say a bank has 100 billion dollars. It gives it on a loan of 10%, and gets back $110 billion.

Out of this money, some amount goes in for paying employees, advertising, marketing and other stuff, lets call them bank expenses. That will be like 4 billion if we consider all banks today and their expenditures, I am still taking a higher figure. It has 106 billion $ in hand.

What about this 106 billion $? It will go back in public. The 100 billion $ that went into loans to the public will now be 106$. It will keep on growing to certain extent.

A noteworthy point is that this 100 billion$ or 106 billion$ will always be with the public, NOT WITH THE BANK.

I think there is no better and practical way to be charitable than this. And banks do give loans based on certain parameters like income, house rent, mortgage etc.

Basically, middle class came into being only after the advent of the banks. A major reason why eastern European countries progressed was banks. You won’t find the same with Arab or Muslim countries. There is a staggering high unemployment and very high poverty. People living in Muslim countries are the poorest on earth. A glimpse of that is enough to see how the whole world will look like.

Apart from concept like Zakat (which actually came after the ghazwas or rather when ’holy’ raids ended) and this Islamic banking, Muslims are still starving in their countries. There is a very high amount of money with all monarchs of their countries, but the average person is poor and unemployed. If you want money to be spread in public (i. e. prosperity for the public), bank loan is the key.

Also, Islamic banking is a concept that was suitable around the time of 7th - 9th century in the age of peasants and their practices.

Also, if there is no interest being charged, why should one ever return a loan? I’ll take a loan of say 10,000 $, why should I return it when there is no interest being charged? And, on what basis will the loan be given? I can ensure you a lot of bureaucracy, people with political contacts would get a preference over an eligible loan taker.]]> Islamic banking is not really suitable for the present day. Religion and public life, matters of finance and economics are best kept separated.



Even if interest is charged by banks today, but that is how they run. Let’s say a bank has 100 billion dollars. It gives it on a loan of 10%, and gets back $110 billion.



Out of this money, some amount goes in for paying employees, advertising, marketing and other stuff, lets call them bank expenses. That will be like 4 billion if we consider all banks today and their expenditures, I am still taking a higher figure. It has 106 billion $ in hand.



What about this 106 billion $? It will go back in public. The 100 billion $ that went into loans to the public will now be 106$. It will keep on growing to certain extent.



A noteworthy point is that this 100 billion$ or 106 billion$ will always be with the public, NOT WITH THE BANK.



I think there is no better and practical way to be charitable than this. And banks do give loans based on certain parameters like income, house rent, mortgage etc.



Basically, middle class came into being only after the advent of the banks. A major reason why eastern European countries progressed was banks. You won’t find the same with Arab or Muslim countries. There is a staggering high unemployment and very high poverty. People living in Muslim countries are the poorest on earth. A glimpse of that is enough to see how the whole world will look like.



Apart from concept like Zakat (which actually came after the ghazwas or rather when ’holy’ raids ended) and this Islamic banking, Muslims are still starving in their countries. There is a very high amount of money with all monarchs of their countries, but the average person is poor and unemployed. If you want money to be spread in public (i. e. prosperity for the public), bank loan is the key.



Also, Islamic banking is a concept that was suitable around the time of 7th - 9th century in the age of peasants and their practices.



Also, if there is no interest being charged, why should one ever return a loan? I’ll take a loan of say 10,000 $, why should I return it when there is no interest being charged? And, on what basis will the loan be given? I can ensure you a lot of bureaucracy, people with political contacts would get a preference over an eligible loan taker.

]]> Tue, 12 May 2009 00:00:00 +0000 http://candide33.instablogs.com http://candide33.instablogs.com Nuya Bidness

I thought of something like this too, like when people buy a car and they cannot make the payments, technically it is the bank’s car and the bank can resell it...right?

But after the car has been used, the bank cannot sell it for the same amount as is owed.

Cars always go down in value, so the risk of getting money back is much greater than the risk of say a house, so they would have to charge much higher for the car percentage wise.

Wouldn’t that make less cars available to the average person? I don’t know about other countries, but America is HUGE!!!! the cities are very far apart and most people live outside of big cities, so cars are a necessity.]]> ””Also, if there is no interest being charged, why should one ever return a loan?””





I thought of something like this too, like when people buy a car and they cannot make the payments, technically it is the bank’s car and the bank can resell it...right?



But after the car has been used, the bank cannot sell it for the same amount as is owed.



Cars always go down in value, so the risk of getting money back is much greater than the risk of say a house, so they would have to charge much higher for the car percentage wise.



Wouldn’t that make less cars available to the average person? I don’t know about other countries, but America is HUGE!!!! the cities are very far apart and most people live outside of big cities, so cars are a necessity.

]]> Wed, 13 May 2009 00:00:00 +0000 http://onehumanityplease.instablogs.com http://onehumanityplease.instablogs.com OneHumanity Please
And yes, cars are a necessity in the US as you don’t use mass transport/trains for commute. Banking like this is only going to ensure that people remain poor.

And Shari’a banking is no where recession - proof. Saudi Arabia and Iran have both been hit by recession and there unemployment figures have gone up, above 15% officially. The real figure is always more than that.]]> Nuya, there are no different loans for women. Simply the bank prefers giving loans to women. And they compel to put their children ion schools or something like that is also one of the considerations while giving a loan.



And yes, cars are a necessity in the US as you don’t use mass transport/trains for commute. Banking like this is only going to ensure that people remain poor.



And Shari’a banking is no where recession - proof. Saudi Arabia and Iran have both been hit by recession and there unemployment figures have gone up, above 15% officially. The real figure is always more than that.

]]> Wed, 13 May 2009 00:00:00 +0000 http://candide33.instablogs.com http://candide33.instablogs.com Nuya Bidness

You are right about recession and unemployment, it is always higher than the ”Official” figures.]]> Oh ok, I see, it is a way for the women to build credit. Good idea!





You are right about recession and unemployment, it is always higher than the ”Official” figures.

]]> Thu, 14 May 2009 00:00:00 +0000 http://dale_tyron.instablogs.com http://dale_tyron.instablogs.com Tyron I don’t think Islamic banking would be of help as this will never favor the poor and the 3rd world countries will have to suffer.

]]> Fri, 15 May 2009 00:00:00 +0000