Comments on: Friday links don’t look very encouraging http://blogs.reuters.com/felix-salmon/2009/05/22/friday-links-dont-look-very-encouraging/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Felix Salmon http://blogs.reuters.com/felix-salmon/2009/05/22/friday-links-dont-look-very-encouraging/comment-page-1/#comment-1912 Sun, 24 May 2009 19:21:56 +0000 http://blogs.reuters.com/felix-salmon/2009/05/22/friday-links-dont-look-very-encouraging/#comment-1912 Thom, I got a haircut on Saturday. So short it doesn’t even need to be combed!

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By: Afpakwar http://blogs.reuters.com/felix-salmon/2009/05/22/friday-links-dont-look-very-encouraging/comment-page-1/#comment-1894 Sat, 23 May 2009 22:45:09 +0000 http://blogs.reuters.com/felix-salmon/2009/05/22/friday-links-dont-look-very-encouraging/#comment-1894 Short answer: any excess or shortfall, by prior agreement, on money loaned is not permissible.

Buiter writes: “If if were viewed as a gift from the lender to the borrower it might even be condoned.” This is true; but a “gift” (whether from lender to borrower, or vice versa) can not, by definition, be by prior contract.

The rationale for the prohibition of riba is slightly different from the analysis that Buiter presents. In brief, in Islamic law, acts are judged by intent. In “transactions” (the exchange, spot, or deferred of “property”) the intent is either charity, or commerce (“both” is inadmissible). If charity, no premium or discount on the principal, by prior agreement, is permissible. If commerce, all capital must share in the risk of the basic transaction (from which profit is expected), to be eligible for a lawful share in the return.

Thus riba is forbidden not because it is “an increase in capital without any services being provided”; it is forbidden because it is an increase in capital, despite the fact that the capital has been shielded completely from the risk of the fundamental venture. In other words, it isn’t that “something for nothing ain’t right”; rather, it is a case, if you will, of “no risk, no gain”!

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By: thom http://blogs.reuters.com/felix-salmon/2009/05/22/friday-links-dont-look-very-encouraging/comment-page-1/#comment-1893 Sat, 23 May 2009 22:15:51 +0000 http://blogs.reuters.com/felix-salmon/2009/05/22/friday-links-dont-look-very-encouraging/#comment-1893 Felix Salmon needs to get a haircut and then comb his hair!!!

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