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Men, there is something secret in outlawing interest. I head it is not only Islam but even some indeginous Asian tribes where practing this principle long b4 Islam. i have also read the story of a popular actor whose father was a philosopher and it insinuates interest as a mysterous secret.

what is bad with interest if you leave alone the religion?

http://en.wikipedia.org/wiki/Usury

See especially the Islamic section and "Freedom to Trade" and "Investment", near the bottom.

My observation has been that "Islamic lending" is no less profit-driven, nor any cheaper, than western loans and mortages.

It is a Market dictum that capital is a part of production which must be paid. Otherwise it goes away, as in the current mortgage lending crisis.

As far as I can tell, the major differences between Islamic and Western banking pertain to risk and loss. In Western banking, the lender partakes in no risk and is paid a set fee. In Islamic banking, the lender partakes in all the risk and shares whatever the rewards are.

Everybody hated interest, Thomas Jefferson, Abraham Lincoln, Napoleon Bonaparte, Ben Franklin, Martin Luther.

It was banned in Christianity as well, and it was looked down upon. Wikipedia 'The Merchant of Venice' by Shakespeare.

Gedo_Boy wrote:Everybody hated interest, Thomas Jefferson, Abraham Lincoln, Napoleon Bonaparte, Ben Franklin, Martin Luther.

It was banned in Christianity as well, and it was looked down upon. Wikipedia 'The Merchant of Venice' by Shakespeare.

One of my favorite Shakespearean plays along-side Hamlet and Macbeth

"The deadly facts herein revealed, lead me to wonder that this monster, interest, has not devoured the whole human race. It would have done so long ago if bankruptcy and revolutions had not acted as counter poisons."

- Napoleon Bonaparte

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i believe that banning interest, tho we shud, has an adverse effect to investing and economic development altogether coz islamic banking wont obviously be as effective as modern banking which is more profit driven.

see, in Islamic banking the lender is liable for all risks so it automatically means there wont be much willingness to lend and hense to invets