I suppose that it's still a willing buyer and willing seller basis. Adam Smith dealt with supply and demand. If there are potential profits to be made out of the Islmaic banking segment, I suppose the banks would consider coming out with the products especially with the Arabs filled up with oil money in recent years.

Anyway, I don't suppose the "administrative fee" would be the same for a 100K house and that of a 200K house?

Islamic principles aside (which I'm not interested in questioning), would there be added cost in the title transfer?

Originally written by Abdelouadoud El Omrani on November 28, 2008 7:08 PM You need cash. the bank studies your refunding capacity (mainly the salary, it needs fixed guaranteed income). It may then buy stocks for you (you decide which ones) and it sells them to you. Once you have the stocks, you sell them immediately and you have cash. You pay back in comfortable monthly payments.

Shall I assume that the profit sharing ratio had been decided in advance as the asset had already changed hands so that the scheduled payments would not change in a falling interest rate environment (such as presently on a global basis)? Thus the borrower would not have the shceduled repayment reduced, just as not having the repayment increased in a rising interest rate environment?

Originally written by Abdelouadoud El Omrani on November 29, 2008 11:09 AM BTW, you know who are the leaders of Islamic finance? Malaysians. Kuala Lumpur is probably the most important center for Islamic financial studies and research. There's an academy and many institutions among which IFSB (see website) Salaam

It's probably true that Malaysia is currently the leader in Islamic banking, at least in Asia. In recent years, Singapore just like many other countries had also jumped onto that bandwagon to help maintain its status as a global financial hub.

With all that oil money in the Middle East, don't you think that Dubai would emerge as the global Islamic Banking leader?

Recession? What recession? It was the usual stampede...

U.S. ‘Black Friday’ Sales Rise 3%

Nov. 29 (Bloomberg) -- U.S. holiday retail sales increased 3 percent yesterday from a year earlier, the smallest gain for a “Black Friday” in three years....

Individuals may spend an average of $616 on holiday gifts this year, down 29 percent from a year earlier, according to a Gallup Inc. poll.

Retailers promoted “doorbuster” deals to attract customers yesterday, called Black Friday because it was said to be when retailers started to make their annual profit.

A worker was trampled by customers and killed yesterday at a Wal-Mart Stores Inc. location on New York’s Long Island, according to local police and the company. At least four shoppers were hurt at the store in Valley Stream, located about 13 miles (20 kilometers) from New York City, Nassau County Police said in a statement.

U.S. shoppers gathered by the hundreds waiting to enter malls on Black Friday, some of which threw open their doors as early as midnight. They were lined up for discounts of as much as 70 percent.

Kohl’s Corp., the fourth-largest U.S. department store, opened at 4 a.m. Wal-Mart and Macy’s Inc. had a 5 a.m. start. Gap opened some locations on Thanksgiving Day. 

http://www.bloomberg.com/apps/news?pid=20601087&sid=arRTxyMCNil4&refer=home

Who's the World's Worst Banker?

...my nominee is someone whose name may not be familiar to American audiences. He's Fred Goodwin, who until October served as CEO of the Royal Bank of Scotland. Goodwin (here's the Wikipedia entry about him) took the helm of RBS in 2000 and proceeded to turn it into an international powerhouse. Known as "Fred the Shred" for his willingness to cut costs—and jobs—he emerged as Britain's leading banker. He was even knighted in 2004 for services to banking. But the bank, which this summer was Britain's largest, is now neither Royal nor Scottish nor much of a bank. RBS's slogan is "Make it happen." A review of the record shows that Goodwin indeed made it happen. He aced every requirement for a hubristic CEO. ...

The result? RBS's stock (here's a two-year chart) has lost 91 percent of its value since March 2007 and retains value thanks only to massive government intervention. A job well-done, Sir Fred! ... http://www.slate.com/id/2205753/

http://www.salon.com/tech/htww/2008/12/02/the_united_states_of_shopping/?source=newsletter

I have an answer to her query, but it is unlikely to satisfy her: ....

How cheap!

From http://blogs.wsj.com/wealth/2008/11/18/rich-cut-back-on-payments-to-mistresses/:

According to a new survey by Prince & Assoc., more than 80% of multimillionaires who had extra-marital lovers planned to cut back on their gifts and allowances. Still, only 12% of the multimillionaire cheaters said they plan to give up on their lovers altogether for financial reasons.