DiscussWorldIssues - Socio-Economic Religion and Political Uncensored Debate - View Single Post - Corporations and Limited Liability not Shariah Compliant

**Olphander** · 07-19-2012, 06:16 AM

I agree with almost everything you said there. But I would like to point out that the Libor scandal you mentioned, as well as the problems with JPMorgan are all regarding banks. As Muslims we should not even be concerned with these institutions from a stock market perspective in that we shouldn't be owning any shares in them. This is my own opinions on the matter I should point out by the way, so take them with a pinch of salt, but purely from a stock market view what happened to these banks and their shares should not affect us as we shouldn't own shares in institutions who almost entirely deal in riba. Personally, I see this is the will of Allah SWT that after so many years the Libor scandal broke out, shares plummeted (Barclays for eg went down by 8% in one day) and these banks faced heavy backlashes from their customers and are now under pressure. To me, those who invested in such companies will have been hit and that is a punishment for having invested in institutions so immersed in Haraam.

From a non stock perspective, I also agree that when these institutions mess up they should face severe consequences, and I agree with you that many times they get away with it or are bailed out by the taxpayer.

The only thing I didn't understand is why you said Muslims should avoid the market at these times. Because your entire post was regarding banks and then you switch back to the markets? I apologise but I couldn't quite see the link. I don't know if you were changing the subject and referring to the current recession and hence not to invest or if you were linking this to the banks? If it's the latter, then we shouldn't be buying shares in banks anyway, if it's the former then I understand what you mean.

In a recession (known as major bear markets sometimes) to invest in companies requires a different approach to investing during a bull market when the market is on the rise and in good ground. I think it would be wise for Muslims in general to avoid the stock market whether it's a bull or a bear market unless they really know what they are doing, otherwise you will either lose big, lose small or gain small. To gain big really requires a lot of work.

07-19-2012, 06:16 AM	#12
Olphander Join Date Oct 2005 Posts 621 Senior Member	I agree with almost everything you said there. But I would like to point out that the Libor scandal you mentioned, as well as the problems with JPMorgan are all regarding banks. As Muslims we should not even be concerned with these institutions from a stock market perspective in that we shouldn't be owning any shares in them. This is my own opinions on the matter I should point out by the way, so take them with a pinch of salt, but purely from a stock market view what happened to these banks and their shares should not affect us as we shouldn't own shares in institutions who almost entirely deal in riba. Personally, I see this is the will of Allah SWT that after so many years the Libor scandal broke out, shares plummeted (Barclays for eg went down by 8% in one day) and these banks faced heavy backlashes from their customers and are now under pressure. To me, those who invested in such companies will have been hit and that is a punishment for having invested in institutions so immersed in Haraam. From a non stock perspective, I also agree that when these institutions mess up they should face severe consequences, and I agree with you that many times they get away with it or are bailed out by the taxpayer. The only thing I didn't understand is why you said Muslims should avoid the market at these times. Because your entire post was regarding banks and then you switch back to the markets? I apologise but I couldn't quite see the link. I don't know if you were changing the subject and referring to the current recession and hence not to invest or if you were linking this to the banks? If it's the latter, then we shouldn't be buying shares in banks anyway, if it's the former then I understand what you mean. In a recession (known as major bear markets sometimes) to invest in companies requires a different approach to investing during a bull market when the market is on the rise and in good ground. I think it would be wise for Muslims in general to avoid the stock market whether it's a bull or a bear market unless they really know what they are doing, otherwise you will either lose big, lose small or gain small. To gain big really requires a lot of work.
	Quote