Standard Chartered Bank officials jailed....!

[TrueEye]

wik_a

dude you are talking in terms of companies, and i'm talking about individuals :d how would an individual raise equity?

[wik_a]

^ lol ok. Well from my point of view its way easier to avoid interest bearing loans for individuals than for companies.

Just don't go for it. You can't afford a car on cash then don't buy it. You can't afford a new house then don't get into mortgage. And even if circumstances bound you to get into loan then you can put your other money into bank account and try to make payments of interest from interest received. It just depends upon circumstances. You can easily stay away from loan when you're individual but when there is no way left then ALLAH knows your intentions/problems and the whole capitalist culture.

For companies its difficult because sometimes its possible to avoid long term debt but not the short term (overdraft and all that).

[fastoriel]

^^ agreeed (h) ... jina haiga aey oday ich khush ravo (h) ...

[TrueEye]

Just don't go for it. You can't afford a car on cash then don't buy it. You can't afford a new house then don't get into mortgage.

nah dude dont agree on that 8-| you wont believe me but 2 third of the cars bought in developed countries are through leases and hire purchases. Why do you think the automobile industry has suffered so much in the wake of all this financial crunch? well thats the main reason, people buy cars on loans unlike in pakistan. This is one of the many ways to stimulate economy and inflate GDP. If people do not have the buying power, give them money and induce them into buying so that the economy blooms. But in pakistan, you might have noticed that the financial crisis didnt have that much toll, the reason is people just do not buy on loans. Which is good for the people but bad for the economy (H)

i have just given an example from one sector (i.e. automobiles), the same applies across all sectors, be it housing or some other. Financial activity should be induced (y)

[wik_a]

you got it oriel (Y)

[wik_a]

nah dude dont agree on that 8-| you wont believe me but 2 third of the cars bought in developed countries are through leases and hire purchases. Why do you think the automobile industry have suffered so much in the wake of all this financial crunch? well thats the main reason, people buy cars on loans unlike in pakistan. This is one of the many ways to stimulate economy and inflate GDP. If people do not have the buying power, give them money and induce them into buying so that the economy blooms. But in pakistan, you might have noticed that the financial crisis didnt have that much toll, the reason is people just do not buy on loans. Which is good for the people but bad for the economy (H)

Are you forgetting that this system is against Islamic teachings? ^o)

Of course you are right but that is the problem. The whole system is based on capitalism. Money is an asset and it requires rent when its given to other for some time.

I've never bought any of my car on lease and I am living in this very capitalist culture (H).

[TrueEye]

but then you are living in pakistan too

[wik_a]

^ Why big banks are coming towards Pakistan? Why do we see huge increase in number of cars so suddenly?

Mere bhai here people ARE taking loans. They number of consumers may not be comparable with those in developed economies but still people are taking out cars on lease, houses on mortgage, various small things on credit cards installments like hell.

[fastoriel]

ya fraud maro ya halal kama k khush raho ...

loan aint good ... ...

[TrueEye]

well the thing is that in developed countries, all the sectors go abreast, means an increase in the number of cars is accompanied by better roads and infrastructure etc. But in pakistan, they just focus on one sector and forget about the others, which in the long run creates problems for them. They are infact lingering in between.

financial stimulation through loans is not a bad thing, provided it is planned in an appropriate fashion.

[fastoriel]

trueeyes ... in pakistan economic growth comes at a cost which is coruption if they avoid coruption n invest with true hearts n encourage people to work awl things will go good ...

real income is falling n money income is increasing ...

rich is getting rich in pakistan making money from money is very easy but poor is getting poor ...

they shoud equalise the distribution of wealth but pakistani people i have nothing to say ...

[TrueEye]

guys vote for me and see how the economy grows in no time(H)

[fastoriel]

trueyes ... i remember in A levels class we used to disscuss about economy of pakistan ... for economics students n economists ... n also stock exchanger the golden era was mushrafs era ...jisme economics perhne ka buhat maza ata tha ab sub baqwas lagti hai no economic activity now ... its kinda boring thats why i often neglect the economic disscussions coz ab maza nai ata ...

[saidhi]

[awan_rulez]

agreed wid autophile

i also received not a single call in last three years from bank bcz i m paying on time.

[hash4u]

my dad worked his whole life as a banker and he always tell me
1) never take a bank loan
2) never use credit cards

the dumb @ss using links to punish bankers forgot he is getting insulted more making it public through media (N)

[wik_a]

well the thing is that in developed countries, all the sectors go abreast, means an increase in the number of cars is accompanied by better roads and infrastructure etc. But in pakistan, they just focus on one sector and forget about the others, which in the long run creates problems for them. They are infact lingering in between.

Although you're quite right yet its something different.

financial stimulation through loans is not a bad thing, provided it is planned in an appropriate fashion.

I really don't have any disagreement with this as far as we are talking about capitalism only but when we drag in Haram/Halal then surely this system is flawed and will lead to catastrophe in future.

[fastoriel]

^^ agreed...

[wik_a]

@TrueEye

But in pakistan, you might have noticed that the financial crisis didnt have that much toll, the reason is people just do not buy on loans.

Sorry I overlooked your this comment so now bringing it up.

The reason why Pakistan didn't have much toll of global financial crisis is not that people don't buy on loans. The reason is that Pakistan's financial institutions had no exposure in CDOs (junk bonds) that caused the catestrophic liquidity crunch around the globe. Pakistan has its own problems lol. People withdrew billions of rupees from their accounts that initially caused the liquidity crunch in Pakistan but SBP lowered CRR & SLR that healed the banks.

If you are interested then PM me your email and I'll send you an analysis report on Banks of Pakistan prepared by Deutsche Bank (data analyzed up to 2006). That will give you a good insight of banking industry of Pakistan. The report starts with "Pakistan: The most profitable banking market of Asia". (H)

[fastoriel]

^^ agreed with bold letters ...