US Financial Crisis

Sep 30th, 2008, in Business & Economy, by

The US financial crisis opens the door for alternative economic models, like sharia finance.

The current crisis in the US and European financial and banking sectors is proof that the western capitalist model is a failure, says sharia economics expert Syakir Sula in Jakarta.

Syakir Sula

Syakir, former head of the Asosiasi Asuransi Syariah Indonesia (AASI), who is from Palopo, South Sulawesi, says the reasons for the financial crisis lay in the disconnect between the monetary values in the financial and money market sector, and the real, physical asset sector.

The money markets act like a balloon, they just float on their own path without any relation to the real sector.

Sharia finance, on the other hand, was firmly grounded in a connection with the real economy, he said.

Another expert, Adiwarman Karim, agrees, and says the markets will learn a hard lesson from the current crisis, and the result will be that the western financial sector will reform and become similar to the sharia model. beritasore

36 Comments on “US Financial Crisis”

  1. timdog says:

    Patrick – is this to be sung, while already a good few Guinnesses down – to fiddle and mandolin accompanyment?

  2. Patrick says:

    @ Timdog – This week is my first serious attempt at poetry and I have actually written several. The funny thing about is that I actually always here music when I am composing and its my own music rather than somebody else’s stuff. I suppose I am more of a lyricist than a beat poet. Should have paid better attention in primary school when they taught us to read & write music because I cannot remember a damn thing. As far as drinking Guiness your always welcome to pal around with me on my next visit to Jakarta and we can pub crawl & drink the black stuff all night long if your up to it?

  3. timdog says:

    Hell, yeah. I’ll bring my guitar – and maybe we can get Achmad to show up with his ukulele and we’ll work out a tune for those words (which genuinely would make decent lyrics)…

  4. Smith says:

    Hey guys,

    I read all the comments here, whatever we speak, we couldn’t able to get out from the crisis right?? Now a days it’s getting really worst, And because of economy crisis, IT field also got down and lots are unemployed people out there.
    I really don’t when this problem gonna get over. 🙁

  5. rony says:

    US financial crisis truly stick with oil demand for US. Since the new economic country such as China and India consume more energy for their growing so then to many US Dollars money around the world, and that make USA to much money printed and of course that’s makes crisis in USA. Because less product and to much money printed will cause extremely inflation in the US itself.
    And corruption that did by US financial person took place the gigantic crisis. Sharia model is a simple system, yes it can be applied but not the medicine for the crisis.
    The root for all economic crisis actually is CORRUPTION, look at Greece, look at USA, look at Indonesia, look at kyrgiztan all of the crisis based from CORRUPTION

  6. realest says:

    it’s not corruption, idiot. why revive an old discussion only to be wrong on so many levels !?

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