بيان المجمع حول المؤسسات المالية الإسلامية العاملة على الساحة الأمريكية

The credit crisis

30 years ago the United States enjoyed a pro business tax and regulatory environment . As a result, inflation in most periods was under control and the market enjoyed a dramatic expansion. One obvious reason was the collapse of the Soviet Union; which resulted in an explosion of productivity, free trade, low interest rates and wealth creation. The bull market experienced two major blows. One the dot com bubble ending and the 9-11 terrorist attack. Because of inflation that was low in historical standards the fed resorted to cutting rates even further to stimulate the economy. The aggressive easing of monetary policy accelerated the lending process.

Mean while; and on the global arena the collapse of communism and the dilution of socialism lead to Read More

The Question of Insurance – Part II

Part I   –   Part II

Auto Insurance

Auto insurance in most (if not all) Western countries is mandated by the state. (Among Muslim scholars, Al-Zarqa and Abdullah Ali-Mahmood argue that automobile insurance must be required even from a Shareeah perspective as it is the way by which people can fulfill their responsibility towards others in the case of accidents, which are an everyday occurrence and whose effects can be very costly.) As was stated above, there does not seem to be any disagreement among commentary scholars that taking such insurance is a type of necessity. Without such insurance one could face heavy fines and even imprisonment. This is what tilts the scale in favor of considering this type of insurance a genuine need or necessity. However, it is important to remember that the principle of necessity requires Read More