Shake Basics

Gordon Brown, his voice the day following the end of the recession in the U K and most of the conditions to be less prosperous. Prime is one of the fundamental truth I can ask to develop policies to achieve this goal and the main reason the business cycle is a superficial reform that is still alive. 

It knows about the starting point to develop more clearly, and in particular the domestic property market. Debt of real estate, an economically efficient "as well as many more people to purchase prices, you must have an observer age and much more. Has been adopted anti-inflation policy of the government, and comfortablethings to calm down, fearing a rapid rise in interest rates, asset prices, in order to achieve price stability without the roar in the middle of the boom can be proud of Ministers, the most expensive item most People buying a house: it is not living at home in order to measure the value, why? 

Attention to the ratio of the average new home price average income in the UK aims to historically high levels today. Soon, the average long-term return is that it is the Received Wisdom that is difficult to predict. It is probably possible to adjust the price of a ticket through the growth of profits with the general inflation rate. However, nominal house prices fall you can get the same results. 

Meanwhile, financial institutions, the income growth, high employment, shows much more than supply demand factors as we intend to spare no sudden collapse. The argument might be as follows, for selfish reasons behind it had a profit in real estate lending activities, as the past few years. Argument to justify the price if the current low interest rate environment than the decades of Germany, as well as prices stay high in many locations in addition to the UK economy is plausible profit are allowed, they will be. 

Perhaps war, but the response seems to be short-term rates rose in the manner prescribed by the Bank of England. Osamu Akira was released the same financial and suspicion at the end of 1980 Unleashed. These results have been disastrous. In 1988, the case £ 40,000 of his own money on typical local taxi driver put the cost of different mortgage financing their first £ 20,000. Within two years, the bank doubled interest rates and most of the seized property. Immediately after the auction house was fixed on her, there was no more than £ 20,000 in sales. 

In 1980, hired by the buyer of the auction the high prices a little patience, the newly acquired shares, selling real estate agent, I hope to use the sales process. Noise auction sale may be anecdotal, in many cases, the corporate buyer in the same corporate group, theft, other points of view adjustment, specifies that a little more. In the case of taxi drivers, the end result, her savings, loan interest and fees to get back was that made the original lender, and a third goes to capital. 

Two factors are likely to force the borrower, conspiracy to adjust the weight of the housing market, especially today. First, we are focusing near-zero marginal cost of creating money at financial institutions in order to access the housing market. In other words, homebuyers to borrow money from the banking system was created from nothing. Since the bank's business logic, as long as the money needed to produce zero or can borrow. Therefore, credit cards, mats provide a letter every day wake up in the UK for personal loans and mortgage loans. 

Meanwhile, the Bank of England, Monetary Policy Committee as a tool to achieve the inflation target, it will appear as soon as the interest rate and the government. This is if you're spending too many people, interest rates are low so that you can not take it believed that there is a need to increase spending. 

However, it is another way, is not to control the problem. Growth engine of economic growth in house prices is to reduce the banking system to reduce the ability to create a clear upward pressure of money in housing prices. Rising interest rates are not necessarily achieve this goal, set the absolute speed of their spread is concerned that the loan is interest only loan from the bank. The punishment is always really borrowing rate does not correspond to the rise in interest rates. Alternatively, loans, reducing the otherwise improving the relationship between force the Reserve Bank.The government has made money in the form of a bank withdraw money (M0) commercial bank reserves to the same time, the central bank's regulatory requirements and preparation, to fill (approximately speaking, M2) applications can be created. If you are ready to gradually increase the requirements, commercial banks, however, the state, M0 is not expanded, then, M2 or more units must use the M0, and M2 is associated with reserve ratio can be achieved by assuming the reduction is the only change. Since the growth of bank loans, to discard the rest of the economy without higher interest rates holds. 

Riyadh, sponsored economic conference in 2001, made a presentation on how to finance housing. While giving his house to finance the purchase, but the Saudi government interest-free loans to Saudi citizens, it was a drainage plan in terms of funding. At the meeting, therefore, are looking to identify other funding sources. It goes without saying, was an enthusiastic member of the banking sector. 

My contention is: the bank simply been invited to create money out of nothing to finance the purchase of a home in Saudi Arabia was interested in his future home owners. So I asked the government to create money interest-free loan to the same number of people can not do anything? I also mentioned the use of bank loans to real estate market is a broader economic cycles in Saudi Arabia. 

Genuine Islamic finance is a different set of results generated by the economy and real estate across the full subsidy system. The purchase of residential real estate prices, more money, before entry into the market for care, are classified as bank customers share the risks of charge. Cycle positive feedback the real estate boom there is only time it recently, real estate prices, we sectors as a result please refer to be a strong deterrent, announced financing loan bank to target a more attractivePlease send me. 

To achieve this, how to organize our banking and financial transactions should be made several major changes. In fact, these changes are clearly reduce the profitability of banks based on commercial interests. His fate is left in the manner prescribed by the regulator option might not need to reform Islamic banks. As a result, the number of commercial interest in Islamic financial institutions to promote a form of content, new challenges, based on the interest-free loans to create traditional paradigms. 

Currently, the Bank of England to offer Islamic home mortgage loans to find the crops, it became quite clear. Experts Shariah is, AG is a step in a temporary fully argued to be acceptable products mortgage Islam today, the attitude of Muslims towards the adoption of the mortgage is eliminate the need to override the cost of use - the need, for example. This allowed the position of full Shari'ah course, I do not stand, but can be modified to support or accept many scientists, this is not an attitude. Many mortgage interest rates which will be charged to the contract claim that Islam is not all.Now money, more money later, "I say, the contract has been determined from the beginning is interesting enough for me. 

Let the numerical examples, bank transfer, B is, B's are subject to return home to take us to 150 000 over the next decade from £ 10 million pounds. The structure of the transaction which, if it is Islamic banking is that, the interest revealed in this transaction, but the man C-man on the B pays £ 150,000 over the next decade transfer of £ 100,000? This is, after all, people in the home mortgage people murabahah B and C are the Muslim clients, I want to buy that seller. 

Money to ensure the movement of these cases, long-term confidence in the industry, it is important to address these issues head on, the intention behind the allegations to determine the structure contracts and other commitments to help coach. This is not good enough just to say, but I accept it Shariah scholars to him, "asked the lawyer not a product. 

Islamic banking is not sufficient reason for the stock of venture capital, but will be moved to break the rules and conditions of the company. Principle has been established the possibility of compromise on the principle of Islamic banking, they should definitely create an environment without compromise. 

Today is an example of a general trend, the variable rent is reset every sentence - Ijara mortgage, in the case of the UK market interest rates will compromise line.Scholars themselves (AAOIFI Shariaruru and accept it) is not Haram, the client has no claim to know the lease to pay rent to the bank before the start of each new semester.

If interest rates increased significantly, Ijara Lee Slate, customers will also increase, the lease rental payments can not be paid to lock him. Shariah, the sample (LIBOR), unknown to disable this state, the future price (in this example, the price of usufruct) that require the selling price of the contract to know whether or not the value? Islamic banking is based on interest as a tool to mimic the bank, interest rates, has entered the mobile phone? 

In addition, clients do not pay the rent, to determine whether it is said, the mortgage contract requires the bank to finance the repayment of bank guarantee that was given to the original. Options for the sale price of their property in order to achieve this goal if it falls at the start, because supposed to sell a house, have been sufficient to repay the loan amount not. Any deficit is the prospect of negative equity was made to the customer's bank. If you rent a property other than the bank's clients, banks, and because it owns the property. Do I need to continue to influence what can be done with the arrival of the client's property prices? Ijara leasing products is actually a mortgage, even if you do not pay your risk of falling property prices, in principle, it should be clear. It will not pay the rent to your bank why, because, on the other hand, if the customer provides venture capital, how was the owner of the property? Maybe the owner is a bank customer, in this case, the parties must support the main form of venture capital house Ijara contract, ownership of home banking customers by the end of the entire account It pays to be sent Pointokuraianto the title to it. 

In fact, rather than the basic rental agreement for sale and the Islamic way of all bears, even more confused. Mixture of risks, a gift if it is allowed to combine a commitment and interest-free loan authorities of Islam to consider what will become of the Muslims and should be clear from all three of these contracts is acceptable. The client bought a gift for donors to pay off interest-free loans to them. We are producing knowledge, scientists do not hesitate to reject a law based on fraud, a combination of cash flow.So the argument, why not apply the promise of a trick, you can play at home? 

At a seminar in London in October 2003, the United Kingdom, Islamic scholars and Islamic banks your monthly mortgage payment was discussed in one of the largest banks in nature. According to scientists, the rent is expressed in terms of goodwill, the (property) and other combinations of the sum of (has sufficient funds to meet its promise to buy a house at the end of the lease the customer Please confirm that.)Bank marketing literature, the word "contribution" to the audience using a highlight of the scientist as he described the "goodwill" and was referred to the latter language has been disabled informed the audience that you need to change. In this case, leasing - - or Sharia, prohibits the sale is structured as a combination of both. In fact, not just a matter of labels, which banks do not care about cash flow, other than actually telling the story may end. It is necessary to use some of the relevant questions if not requested, and product development for several months. 

Five hundred years ago, a triple dilemma of trinius contractum contract before the church in Europe. Trader, finance, the church had developed a ban on usury which is designed to avoid. Investment, insurance, ticket sales: the triple combination had contracted three contracts. 

From the perspective of the church, all three components, the result of the resolution is mortgage interest payments, the question has been banned. However, the church was powerless to protect themselves, the combination of contracts is prohibited by the ability to reach past the edge and apparently legal, is prohibited in principle. 

Muslims invented the contract and gave the title to them such as triple ground "tawarruk the" murabahah acquisition "seems to be like. We innovation, podium presentations, or tapping of the Apostles CELEBRATE. These distortions, usury is prohibited in Islam, now experience the same thing happened to the Christian world is threatened not.