Credit union offers "Islamic mortgage"

[radon]

Re: Credit union offers "Islamic mortgage"

The entire concept is that in any business deal there has to be risk, on both sides; otherwise one side gets all the benefit while essentially taking no real risk and ends up with the entire enchilada... The deal is structured based on the FMV of the rent on the asset, not on a set interest rate.

Sounds like something similar to a down payment, and you can call the profit involved rent or interest or whatever. This looks, walks, and quacks like a duck. So far the differences sound completely superficial.

What happens if the family stops paying?

[radon]

Re: Credit union offers "Islamic mortgage"

So, to answer your question, NO, its not an impact on growth... Banking is a TOOL that enables commerce and the exchange of labor or production for something of value,

Right, so you hate banking. But why do claim that it has no impact on growth while acknowledging that it facilitates the distribution of capital. Doesn't that sound contradictory.

[karim0028]

Re: Credit union offers "Islamic mortgage"

Yeah, i hope it doesn't degenerate into silly meddling of West vs East either.... I am simply saying that i disagree with saying that w/o interest nothing happens.. Nobody has to lend, but at the right opportunity people have always been willing to do business and enter into partnerships for profit, not interest.....

I am simply pointing to the fact that in history its been done, and in fact it was trade and business that bought Europe out of the dark ages not banking, but business and trade that was based on parternships and investing not purely based on lending... Bc, if Europe did it via lending, the ME did it via equity financing, and looking at recent history to say that the ME is backwaters bc it doesnt do interest is not exactly a correct response or even a valid point.

Societies that are entrepenurial, active and thinkers will gain by leaps and bounds while those that stagnate will, well, stagnate... Not based on banking but on thought....

Pooling capital is just a tool; how you make a profit on it is the difference.... The lender always gets his piece with minimal risk, business partners look out for each other, in the sense that if they work together both succeed. The lender on the other hand is by definition an adversary, since his claim is superior to your equity.

If equity financing was available for housing, how many people would choose it over creditor based financing?