TAUAJA

W elcome back. I may say economies collapse because of debt, wars were raged because of debt, and catastrophes happened because of debt, but on the other hand the economy cannot function without debt. So we have two kinds of debt, good debt and bad debt. So the question is where to draw the line? When to know that this is good debt? When to know that this is bad debt? Islamic finance provides us with a principle that helps us to find or to draw the line. So debt would be good if it is used to finance real economic activities. A s long as debt creation and wealth creation are synchronized and going hand in hand this will be...in principle at least...good debt. Once debt diverges from wealth creation, once it starts on it's own, once it starts self replicating then we know that we are in the dangerous zone. S o let me summarize this overview of Islamic Finance. Islamic Finance, first of all, it's universal in nature. It's a moral system of finance. The basic moral ...