In the first of October (October) agreed last Congress to establish a fund called "Fund hope for homeowners" Hope for Homeowners, at a value of $ 300 billion under the supervision of the Federal Housing Administration to help borrowers insolvent homeowners. It was expected that the Fund assisted 400 thousand insolvent.
It was surprising to those in charge of the Fund that the number of applicants to benefit from its loans, with reduced interest rates very low until recently. The program was requested by the lenders to forgive, but a voluntary basis, some debts to insolvent homeowners.
At a time when the government insurance for half the value of the debt for homeowners to involve the government in any profits they could do from the sale of their homes.
This program differs in its objectives for the program known the other, Congress established under the name "program to buy distressed assets" Troubled Assets Purchase Program with a capital of 700 billion dollars and was the primary purpose is to help banks. At a Congressional hearing on November 17 (November), attended by Henry Paulson, Treasury secretary in charge of administering a second fund, Ben Bernanke, Chairman of the Federal Reserve Bank of Central and Sheila Bair, chair of the company's Federal Deposit Insurance Corporation, called on members of Congress and Secretary of the Treasury to use a portion of the fund to help homeowners.
While acknowledging that the minister is empowered by the law of the Fund such authority, the minister refused such use, on the grounds that the primary purpose of the Fund is to help stabilize the financial sector and not spending to stimulate the economy. However, Ms. Sheila Bair warned the meeting to five million families in danger of losing their homes over the next two years, unless the government to take further action.
And warned that the stakes are high and time is tight, so it can not rely on voluntary agreements. If the forecast Miss Bear, ten times the "Pandora's box" referred to will not be enough to help all who stood to lose their homes! This means that it will be the next president Barack Obama, the problem of economic, social, very volatile, not to mention the problems existing in other sectors of the U.S. economy! Will not only negative effects on the U.S. economy alone, but will extend to other parts of the world, including the Petroleum Exporting Countries.
It is quite clear that the government and Congress do not possess a general framework to solve these problems, and that it is dealing with each sector in a manner of trial and error, in November 12 (November), ie, before the hearing referred to, Henry Paulson issued a lengthy statement explaining the action taken up to that date, as he explained what he intends to do during the coming period until the end of President George W. Bush.
The most important decision of the minister is the reverse of the troubled assets purchase program for banks and replaced by the direct investment in their capital. It also decided to go direct to the sectors that provide loans to consumers and the automotive sector as credit card companies. In fact it is, although these and other programs are trying to pump more liquidity into the veins of the U.S. economy, but they lead to the creation of more debt to other sectors at the same time.
Indeed, the government investment in banks, but capital is through the purchase of preference shares where, and these shares but is in fact a kind of bond interest! It is very surprising that the statement of Henry Paulson did not include any reference to the possibility of inflation in the future due to increased liquidity, which will be published in the arteries of the U.S. economy, this will be the problem within the heavy legacy we leave the next president.
Although one can not deny the need to inject liquidity into the economy in situations like this, but the problem is not lack of liquidity, but with the problem of lack of confidence in the fact of the U.S. economy is now also in the future. To restore this trust, it is essential to assure the greatest possible number of parties concerned by the crisis, and directly as possible. This would reduce the need to pump more liquidity.
At a time when the U.S. government has succeeded so far in preventing a complete collapse of the U.S. financial system, as Secretary Paulson has argued, but it is clear that all actions have not succeeded in preventing further loss of distressed families to their homes and prevent more companies from the demobilization of its employees.
We argue that the re-formulation of the plans in a manner consistent with Islamic law could provide a solution to the problem of the mortgage, much better than what is prescribed in the programs offered, although a comprehensive solution to the crisis required the procedures more extensive than we will propose in this article.
Summed up the Islamic solution in five procedures or rules of the first and the preventive measure, and the other treatments. The preventive measure is to amend the laws governing the financial markets, so as to prevent all contracts that contain interest "usury", gambling, obscene ignorance.
As the financial system, particularly in industrialized countries mired in such buzz these contracts, this procedure should be part of long-term plan to reform the system, and this requires many details of the place is not here. Therefore, we turn to remedial actions to own mortgage problem and then move to how to apply them.
The rule is the first treatment as saying the Almighty, "but if you have your capital now onward," it did not stop this rule to resolve the crisis added to the second base treatment, "though he is in a hard look at the soft", the Tikvah not add them to the third treatment meaning "and believe it is better for you if you know", the three of these were not added to them Kaviat fourth rule of God's Prophet peace be upon him "Put and speed", and it seems that the crisis is so serious that it requires the introduction of all the rules, the above therapeutic mentioned once, as we shall see below:
First: is the money that the government into the financial system in payment of debts to banks on behalf of the owners of real estate insolvent, according to the detail that will appear in the rest of the points of this solution.
Secondly: Since banks had a major role in the emergence and escalation of this crisis, it should bear a share of the cost of the solution. This includes the exemption of all debtors of all the benefits of debt. This application of a therapeutic first referred to above. It should also extend the repayment period to the extent commensurate with the size of the debt and the size of the debtor's income and wealth, and this application for a second treatment.
Third: to exempt all debtors from a certain amount of the original debt according to the rules referred to in point II. This application of a therapeutic third.
IV: no more than the amount of debt relief for the original one third, and the application of the Prophet peace be upon him "one third and one third is too much."
Fifth: The banks of families fulfilling the debt on behalf of the city government.
VI: The premiums paid are as varied as the conditions of the debtor in terms of income and wealth, to be clear controls to estimate it.
Seventh: the unemployed are exempt from paying premiums for unemployment of work, not to reduce the volume of the remaining debt on them, and not to increase the exemption period for a full year.
Eighth: the debtor can increase the amount of premiums paid, to obtain a reduction of the value of the remaining debt owed by one third of the increase in the value of the premium Almtojb, and not to be a source of payment create another religion, and this reduction in therapeutic application of the rule of four.
IX: preventing the bank and all financial institutions to sell their debts to reduce opportunistic motives that lead to the creation of more debt.
Tenth: preventing the bank from insurance on the debt temporarily, in order to reduce opportunistic motives and also so that a clear controls for this, but be insurance for the government.
Eleventh: give all creditors of insolvent a grace period of between one and three years and this second application of the rule unless the debtor to sell the home, sold by the government is to meet all debt of the sales price.
XII: The government puts the controls and sanctions necessary to prevent fraud on this program.
Would the solution we are proposing to provide a safety net for the economic and social insolvent debtors, while providing the bank-some or all of the necessary liquidity to move the financial system, and this procedure will reduce the pressure of the need for creditors and debtors to sell houses, and thus reduce pressure on prices down. The availability of reassurance to the city will encourage families to spend on other needs, helping to revitalize the economic cycle and pumped into the financial system more liquidity.
The solution we propose eliminates the need for the government to buy distressed assets of financial institutions or to buy the shares, and therefore permissible for her to assess the problem of financial assets is very difficult to know the real value in such circumstances. This was one of the most difficult objections made by opponents of the plan to buy troubled assets.
The solution that we propose reduces the amount of liquidity to be pumped into the financial system as soon as the atmosphere of enhanced confidence in the system under which, and thus reduce the government debt, while easing the inflationary pressures in the foreseeable future.
* Quoted by the "economic" Saudi Arabia.
It was surprising to those in charge of the Fund that the number of applicants to benefit from its loans, with reduced interest rates very low until recently. The program was requested by the lenders to forgive, but a voluntary basis, some debts to insolvent homeowners.
At a time when the government insurance for half the value of the debt for homeowners to involve the government in any profits they could do from the sale of their homes.
This program differs in its objectives for the program known the other, Congress established under the name "program to buy distressed assets" Troubled Assets Purchase Program with a capital of 700 billion dollars and was the primary purpose is to help banks. At a Congressional hearing on November 17 (November), attended by Henry Paulson, Treasury secretary in charge of administering a second fund, Ben Bernanke, Chairman of the Federal Reserve Bank of Central and Sheila Bair, chair of the company's Federal Deposit Insurance Corporation, called on members of Congress and Secretary of the Treasury to use a portion of the fund to help homeowners.
While acknowledging that the minister is empowered by the law of the Fund such authority, the minister refused such use, on the grounds that the primary purpose of the Fund is to help stabilize the financial sector and not spending to stimulate the economy. However, Ms. Sheila Bair warned the meeting to five million families in danger of losing their homes over the next two years, unless the government to take further action.
And warned that the stakes are high and time is tight, so it can not rely on voluntary agreements. If the forecast Miss Bear, ten times the "Pandora's box" referred to will not be enough to help all who stood to lose their homes! This means that it will be the next president Barack Obama, the problem of economic, social, very volatile, not to mention the problems existing in other sectors of the U.S. economy! Will not only negative effects on the U.S. economy alone, but will extend to other parts of the world, including the Petroleum Exporting Countries.
It is quite clear that the government and Congress do not possess a general framework to solve these problems, and that it is dealing with each sector in a manner of trial and error, in November 12 (November), ie, before the hearing referred to, Henry Paulson issued a lengthy statement explaining the action taken up to that date, as he explained what he intends to do during the coming period until the end of President George W. Bush.
The most important decision of the minister is the reverse of the troubled assets purchase program for banks and replaced by the direct investment in their capital. It also decided to go direct to the sectors that provide loans to consumers and the automotive sector as credit card companies. In fact it is, although these and other programs are trying to pump more liquidity into the veins of the U.S. economy, but they lead to the creation of more debt to other sectors at the same time.
Indeed, the government investment in banks, but capital is through the purchase of preference shares where, and these shares but is in fact a kind of bond interest! It is very surprising that the statement of Henry Paulson did not include any reference to the possibility of inflation in the future due to increased liquidity, which will be published in the arteries of the U.S. economy, this will be the problem within the heavy legacy we leave the next president.
Although one can not deny the need to inject liquidity into the economy in situations like this, but the problem is not lack of liquidity, but with the problem of lack of confidence in the fact of the U.S. economy is now also in the future. To restore this trust, it is essential to assure the greatest possible number of parties concerned by the crisis, and directly as possible. This would reduce the need to pump more liquidity.
At a time when the U.S. government has succeeded so far in preventing a complete collapse of the U.S. financial system, as Secretary Paulson has argued, but it is clear that all actions have not succeeded in preventing further loss of distressed families to their homes and prevent more companies from the demobilization of its employees.
We argue that the re-formulation of the plans in a manner consistent with Islamic law could provide a solution to the problem of the mortgage, much better than what is prescribed in the programs offered, although a comprehensive solution to the crisis required the procedures more extensive than we will propose in this article.
Summed up the Islamic solution in five procedures or rules of the first and the preventive measure, and the other treatments. The preventive measure is to amend the laws governing the financial markets, so as to prevent all contracts that contain interest "usury", gambling, obscene ignorance.
As the financial system, particularly in industrialized countries mired in such buzz these contracts, this procedure should be part of long-term plan to reform the system, and this requires many details of the place is not here. Therefore, we turn to remedial actions to own mortgage problem and then move to how to apply them.
The rule is the first treatment as saying the Almighty, "but if you have your capital now onward," it did not stop this rule to resolve the crisis added to the second base treatment, "though he is in a hard look at the soft", the Tikvah not add them to the third treatment meaning "and believe it is better for you if you know", the three of these were not added to them Kaviat fourth rule of God's Prophet peace be upon him "Put and speed", and it seems that the crisis is so serious that it requires the introduction of all the rules, the above therapeutic mentioned once, as we shall see below:
First: is the money that the government into the financial system in payment of debts to banks on behalf of the owners of real estate insolvent, according to the detail that will appear in the rest of the points of this solution.
Secondly: Since banks had a major role in the emergence and escalation of this crisis, it should bear a share of the cost of the solution. This includes the exemption of all debtors of all the benefits of debt. This application of a therapeutic first referred to above. It should also extend the repayment period to the extent commensurate with the size of the debt and the size of the debtor's income and wealth, and this application for a second treatment.
Third: to exempt all debtors from a certain amount of the original debt according to the rules referred to in point II. This application of a therapeutic third.
IV: no more than the amount of debt relief for the original one third, and the application of the Prophet peace be upon him "one third and one third is too much."
Fifth: The banks of families fulfilling the debt on behalf of the city government.
VI: The premiums paid are as varied as the conditions of the debtor in terms of income and wealth, to be clear controls to estimate it.
Seventh: the unemployed are exempt from paying premiums for unemployment of work, not to reduce the volume of the remaining debt on them, and not to increase the exemption period for a full year.
Eighth: the debtor can increase the amount of premiums paid, to obtain a reduction of the value of the remaining debt owed by one third of the increase in the value of the premium Almtojb, and not to be a source of payment create another religion, and this reduction in therapeutic application of the rule of four.
IX: preventing the bank and all financial institutions to sell their debts to reduce opportunistic motives that lead to the creation of more debt.
Tenth: preventing the bank from insurance on the debt temporarily, in order to reduce opportunistic motives and also so that a clear controls for this, but be insurance for the government.
Eleventh: give all creditors of insolvent a grace period of between one and three years and this second application of the rule unless the debtor to sell the home, sold by the government is to meet all debt of the sales price.
XII: The government puts the controls and sanctions necessary to prevent fraud on this program.
Would the solution we are proposing to provide a safety net for the economic and social insolvent debtors, while providing the bank-some or all of the necessary liquidity to move the financial system, and this procedure will reduce the pressure of the need for creditors and debtors to sell houses, and thus reduce pressure on prices down. The availability of reassurance to the city will encourage families to spend on other needs, helping to revitalize the economic cycle and pumped into the financial system more liquidity.
The solution we propose eliminates the need for the government to buy distressed assets of financial institutions or to buy the shares, and therefore permissible for her to assess the problem of financial assets is very difficult to know the real value in such circumstances. This was one of the most difficult objections made by opponents of the plan to buy troubled assets.
The solution that we propose reduces the amount of liquidity to be pumped into the financial system as soon as the atmosphere of enhanced confidence in the system under which, and thus reduce the government debt, while easing the inflationary pressures in the foreseeable future.
* Quoted by the "economic" Saudi Arabia.
ليست هناك تعليقات:
إرسال تعليق