39:00 "Stock markets now are a way of getting money out of companies, rather than a way of putting money into (raising capital for expansion) companies."
If you underwrite a bond issuance for a company, and are left holding a wodge of the bonds because you screwed up and the market did not take it up in full, you are left with a credit exposure on that company that you do not want. Buying a credit default swap is one way of reducing that exposure quickly, provided you realise you have entered into a fresh credit exposure on your counterparty to that swap, as they will have to pay compensation to you in the event the borrower defaults on his bond obligations. And you can do it piecemeal, reducing the credit default holding (by selling it on to third parties) as you get rid of you overbought position in bonds in the secondary market. Jolly useful as a credit risk management tool. But if the counterparty is an insurance company that doesn't know what they are doing in writing CDS's, and they write an awful lot of them, and there is no way for you to know how much they have written in the market (in order for you to judge your credit exposure to them) they may go bust themselves, and fail to pay you in the event of a default by the company you issued the bonds for. Thats what happened in the London market.
Central to Islamic economics and finance is the fact that money itself has no intrinsic value. As a matter of faith, a Muslim cannot lend money to, or receive money from someone and expect to benefit through any increase, such as interest (commonly referred to as riba) is not allowed. To make money from money is strictly forbidden, wealth can only be generated through legitimate trade and investment in assets. Money must be used in a productive way. The principal basis of Islamic finance is based on the concept of trading involving the sharing of profit and risk (loss). The profit is shared between the person providing the capital and the person providing the management expertise. These are the fundamentals of Islamic finance and trading.
and yet Muslims are fully involved in earning money from money. It's a fine story but no one actually lives by it. Can you still call yourself a Muslim if you earn interest from money? There is good deal of hypocrisy in religion sadly, though it doesn't stop religious people trying to tell everyone what to do and thinking up vile punishments for people who just want to be responsible for themselves.
The Islamic Shariah / values are the foundation a practicing Muslim's life is built on. Those who practice these values will reap the harvest of peace prosperity and significance in this limited life and in the next life of eternity. The righteous rewarded while the evil have severe consequences of eternal pain. Islam is a force by itself which people of intellect study, research and gravitate towards it. Humanity's search for peace and prosperity ends with embracing Islam.
+Hussain Fahmy حسين فحمي You could have stopped with your first comment about money, which I like very much; but you spoiled it by getting into dogma drummed into your head since you could first walk, and by wanting to force these ideas on others - instead of simply accepting it as your belief. It is the arrogant attitude that is despised by the west, not what you have to say, which may make sense to many. But I know you won't understand this: which sadly is one reason why we are now going to have decades of misery and bloody war for innocent citizens - this kind of attitude gives propaganda value to the money lords who want the oil and you are only helping them.
Sounds good except that islamic economies are the largest under performers on the planet. They consistently score with low GDP per capita, low social standards (literacy, health, education etc..)-there really isn't much to learn from islamic economies except to not do what they are doing.
TI'm guytner was never federal reserve member. Mr. Guytner was treasure secretary under Obama from 2008 2011. Thep talking heads, all they do is lecture. With no concept.
If you mean Timothy Geithner, then he was both. He was President of the Federal Reserve Bank of New York (2003-2009) and then later Secretary of the Treasury under Obama (2009-2013).
Not more regulation and not more knowledge for the wide public, I highly disagree with his points about that. Too big to fail means too big to exist, otherwise profits will be privatized and losses socialized, as it has always been.
He's not saying regulation isn't the answer, he's saying that piling more complicated rules and regulations on top of the old ones will only benefit whoever can hire the most lawyers. In the Q&A he specifically cites the Glass-Steagall Act as the kind of regulation we need: simple but powerful laws that break up the industry and eliminate the conflicts of interest and corruption that creates Too Big To Fail institutions.
39:00 "Stock markets now are a way of getting money out of companies, rather than a way of putting money into (raising capital for expansion) companies."
If you underwrite a bond issuance for a company, and are left holding a wodge of the bonds because you screwed up and the market did not take it up in full, you are left with a credit exposure on that company that you do not want. Buying a credit default swap is one way of reducing that exposure quickly, provided you realise you have entered into a fresh credit exposure on your counterparty to that swap, as they will have to pay compensation to you in the event the borrower defaults on his bond obligations. And you can do it piecemeal, reducing the credit default holding (by selling it on to third parties) as you get rid of you overbought position in bonds in the secondary market. Jolly useful as a credit risk management tool. But if the counterparty is an insurance company that doesn't know what they are doing in writing CDS's, and they write an awful lot of them, and there is no way for you to know how much they have written in the market (in order for you to judge your credit exposure to them) they may go bust themselves, and fail to pay you in the event of a default by the company you issued the bonds for. Thats what happened in the London market.
around 8:30 was the NFT market
'of [INAUDIABLE] mortgages in the United States' word at 21.50 is 'Duff' it is polite English for 'crap', 'shit'
Prophetic response at the end, regarding Trump's rise.
Central to Islamic economics and finance is the fact that money itself has no intrinsic value. As a matter of faith, a Muslim cannot lend money to, or receive money from someone and expect to benefit through any increase, such as interest (commonly referred to as riba) is not allowed. To make money from money is strictly forbidden, wealth can only be generated through legitimate trade and investment in assets. Money must be used in a productive way. The principal basis of Islamic finance is based on the concept of trading involving the sharing of profit and risk (loss). The profit is shared between the person providing the capital and the person providing the management expertise. These are the fundamentals of Islamic finance and trading.
and yet Muslims are fully involved in earning money from money. It's a fine story but no one actually lives by it. Can you still call yourself a Muslim if you earn interest from money? There is good deal of hypocrisy in religion sadly, though it doesn't stop religious people trying to tell everyone what to do and thinking up vile punishments for people who just want to be responsible for themselves.
The Islamic Shariah / values are the foundation a practicing Muslim's life is built on. Those who practice these values will reap the harvest of peace prosperity and significance in this limited life and in the next life of eternity. The righteous rewarded while the evil have severe consequences of eternal pain. Islam is a force by itself which people of intellect study, research and gravitate towards it. Humanity's search for peace and prosperity ends with embracing Islam.
+Hussain Fahmy حسين فحمي You could have stopped with your first comment about money, which I like very much; but you spoiled it by getting into dogma drummed into your head since you could first walk, and by wanting to force these ideas on others - instead of simply accepting it as your belief. It is the arrogant attitude that is despised by the west, not what you have to say, which may make sense to many.
But I know you won't understand this: which sadly is one reason why we are now going to have decades of misery and bloody war for innocent citizens - this kind of attitude gives propaganda value to the money lords who want the oil and you are only helping them.
Except interest from loans is compensation for risk
Sounds good except that islamic economies are the largest under performers on the planet. They consistently score with low GDP per capita, low social standards (literacy, health, education etc..)-there really isn't much to learn from islamic economies except to not do what they are doing.
TI'm guytner was never federal reserve member. Mr. Guytner was treasure secretary under Obama from 2008 2011. Thep talking heads, all they do is lecture. With no concept.
If you mean Timothy Geithner, then he was both. He was President of the Federal Reserve Bank of New York (2003-2009) and then later Secretary of the Treasury under Obama (2009-2013).
Not more regulation and not more knowledge for the wide public, I highly disagree with his points about that.
Too big to fail means too big to exist, otherwise profits will be privatized and losses socialized, as it has always been.
+lanzelot1989 Always been, huh? The wider public has never enjoyed the fruits, they only pick up the tab, right? On which planet, sir?
He's not saying regulation isn't the answer, he's saying that piling more complicated rules and regulations on top of the old ones will only benefit whoever can hire the most lawyers. In the Q&A he specifically cites the Glass-Steagall Act as the kind of regulation we need: simple but powerful laws that break up the industry and eliminate the conflicts of interest and corruption that creates Too Big To Fail institutions.