Sunday, December 2

Reform of Islam is Not Bush's or the Pope's business

An interesting viewpoint here. My comments:

1. Interesting background if a bit abruptly written, it would be useful to draw some links between the current issues and say the Ottoman Empire or even the issue of Ataturk who tried to reform. Not sure why he did not mention that. It would have been great to see that kind of discussion.

2. He seems not to like Pope Benedict's response to the Muslim Cleric's letter. One thing which he did not mention is the contradiction between seeing Muslim Affairs driven by these clerics and his later point that "Furthermore, Islam’s religious affairs are not merely addressed by a hierarchy of clerics.  Islamic affairs are not confined to graduates from al-Azhar University or other Islamic institutions.  As a matter of fact, the greatest Muslim scholars are intellectuals, such as writers, physicians, engineers, lawyers, and other professionals". Which begs the question, when Tariq Ramadan asked for a moratorium on Huduud, he was torn apart.

3. He says that Bush's God is destructive. But this flies in the face of all that I have read about Muslim Theology which clearly states that the God of the Jews, Christians and Muslims is one and the same. I was also not very sure why he would say Bush's God? Surely, the same God is Baghdadi's God as well? And if all of these events and people are being driven by the same God, then why on earth is HE doing what HE is doing?

4. He seems to ascribe dropping the nuclear bomb to western values, but I think there is some severe confusion between western values and christian values. There is something else called as Grecian Values, Roman Values, Greco-Roman Values, etc. We also have the Enlightenment, Reformation and the scientific revolution if we are talking about values. I suspect the author is a wee bit confused about all these.

5. Also broad generalisations detract from an interesting article. For example, he says, "A couple of weeks ago, in Israel, actually in occupied Palestine, a young woman was savagely beaten by five of her fellow students of the Torah because she refused to move to the back of the bus.  Muslim men promptly evacuate their seats for women, anytime and anywhere." By taking one example of Jewish Rage Boys, he damns all Jews. On the other hand, he says Muslim Men promptly evacuate their seats for women, anytime and anywhere. I can only think that he lives on another world if he thinks Muslim men are paragon of virtues. Or perhaps he has not heard about honour killings in his neighbourhood? He talks about Muslim heads of state but he does not talk about Muslim clerics raining fatwas's on how women cannot be leaders.

6. Islam being the fastest growing religion claim.  Well, this is, to say the least, a bit contentious.

7. And he believes in 9/11 being a conspiracy. Well, lol, what can I say but to direct you to this site.

8. He admires Turabi, but the chap seems to be more complicated than just being known as a progressive reformer. He even praised the attempted assassination of President Mubarak. But this is debatable.

So I have to admit at the end, not impressed, very confused thinking and very muddled argumentation. Also, (just kidding), he clearly shows he didnt pay attention in his quran and history class :P (i did!!! :P provided I remember what i am taught!:))

But seriously, it IS my business as long as this fight between you and dubya gets me in the line of fire on the tube tomorrow morning. So if you do not mind, I will keep on poking and prodding. But it is a bit worrying that people still hold these thoughts.

Read and wonder.


December 1, 2007

Reform of Islam is Not Bush's or the Pope's business

By Ali Baghdadi

I was born in Islam.  I spent the first twenty-three years of my life in the shadow of al-Aqsa Mosque and the Dome of the Rock in Jerusalem which, according to the Quran, Islam’s holy book, Prophet Muhammad had journeyed to, ascended to heaven and returned home to Mecca in Arabia, all in one night. 

Some influential Muslim scholars say that the journey was only a dream.  Others, with the Dark Ages mentality, insist that it was physical. 

For twenty-three years, without any interruption, I listened to al-Azan, the Muslim call for prayer, five times a day.  At age 4, prior to starting public school at age 7, I attended a kuttab, a madrasa, a private religious school.  The elderly teacher, a sheikh and a former officer in the Ottoman army, dressed in a long black robe and a white turban, was occasionally paid with a few loaves of bread, eggs or a live chicken.   My family couldn’t afford it.  I rewarded my sheikh with a daily kiss of his hand and a prayer, asking God to give him a comfortable and everlasting life in heaven.  At age nine or ten I was able to recite most of the chapters of the Quran from memory.   I studied the Quran, Islamic thought, Islamic history, Islamic culture and Arabic language at all educational levels.  I also attended lectures on political Islam given underground by some controversial scholars. 

Things, however, have changed.  My association with Islam throughout my adulthood has become political and not religious.  I don’t go to a mosque.  I don’t fast.  I have no intention of ever performing the pilgrimage to Mecca.  I suspended giving al-Zakat, charity because Bush has designated almost all Muslim charitable organizations that aid orphans and widows in Palestine, Lebanon and Iraq as terrorists and forced them to close.

I am not concerned about Islam.  Islam has survived all foreign invasions.  Bush’s crusade will be no exception.   I am, however, concerned about Muslims, as well as Christians, in the Muslim World who are targeted by the West, particularly the United States government. 

Usually I don’t defend religion, only people.  Religion is faith not science.  I insist that every individual has the right to believe or not to believe.  Each man or woman has the right to accept a religion or to reject it.  A person has the right also to choose to be an atheist.  People must be judged by their deeds and contributions, not their faith.  I stand for justice, freedom, equality, peace and prosperity for all.  I support women and gay and lesbian rights. 

I was greatly disturbed by the Pope who, citing the Quran as an obstacle, rebuffed a massive outreach effort by Muslims. 

Recently, a 29-page letter was sent to leaders of major Christian dominations by 138 high-level Muslim leaders and scholars representing 1.3 billion Muslims worldwide.  The letter appeals to religious tolerance, dialogue and understanding.  It calls on Christian and Muslim religious leaders to work in unison for world peace, cooperation and prosperity.  It emphasizes the similarities between Christianity and Islam as monotheistic religions.  It speaks of the affinity between the Bible and the Quran.  Both religions worship one God and call for the love of one’s neighbor.  Fortunately, the letter titled “A Common Word between Us and You” was welcomed by various Christian leaders and institutions. 

However, Pope Benedict’s reaction was negative and arrogant.  It is also insulting to Christian Arabs who are culturally Muslims.  He chose to close the door to an idea which was very dear to his predecessor, Pope John Paul II, who, when the Quran was presented to him, bowed and kissed it.  Benedict’s hostility to Muslims is nothing new.  Last year, in a speech he delivered in Germany, he spoke of Islam as a violent and irrational religion.  He quoted Emperor Manuel II of the Byzantine Empire who said that Muhammad had brought only "evil and inhuman" things. 

Dr. Karen Armstrong of Oxford, a former nun who is amongst the most renowned theologians and has written numerous bestsellers on the great religions and their founders, disagrees. 

“Certainly not. There is far more violence in the Bible than in the Qur'an; the idea that Islam imposed itself by the sword is a Western fiction, fabricated during the time of the Crusades when, in fact, it was Western Christians who were fighting brutal holy wars against Islam. The Qur'an forbids aggressive warfare and permits war only in self-defense; the moment the enemy sues for peace, the Qur'an insists that Muslims must lay down their arms and accept whatever terms are offered, even if they are disadvantageous. Later, Muslim law forbade Muslims to attack a country where Muslims were permitted to practice their faith freely; the killing of civilians was prohibited, as were the destruction of property and the use of fire in warfare.”

The Vatican says, “Muslims do not accept that one can discuss the Quran in depth because they say it was written by dictation from God.  With such an absolute interpretation, it is difficult to discuss the contents of faith.”  As a precondition for a dialogue, the Vatican demands that Muslims change their belief that the Quran is the word of God.

I say with a great certainty that the Pope’s action and conduct are not inspired by God, on whose behalf “his holiness” speaks.  It is dictated by politics, racism, ignorance and hatred.  It is a part of the cruel crusade that George W. Bush has declared against Muslims.  Since his ascension to the papal throne, Benedict, a former Hitler youth, has been putting the papacy, as well as Christianity, in the service of the U.S. empire. 

Muslims are not asking for a theological dialogue.  They are not trying to convince anyone that the Quran was dictated by God himself.  Unlike Christians who are asking Jews to come to the Church, Muslims are not calling on Christians to come to the Mosque.  Muslims are not demanding that Christians abandon the trinity and recognize Jesus only as a prophet.  Though they don’t believe in the crucifixion and vindicate Jews from murdering Jesus, Muslims don’t see any reason for Christians to bring down the cross and raise up the crescent. 

Muslims and non-Muslims ought to focus attention on common goals that are more important to humanity than theology such as world peace, justice, freedom, equality, love, understanding, respect for one another, tolerance, cooperation, as well as mother earth. 

In Muslim lands, Muslims, Christians and Jews have lived as neighbors for almost fifteen hundred years.  They didn’t dialogue.  They didn’t debate.  They lived in peace and tranquility.  The fact that Christianity and Judaism continued to exist alongside Muslims, who were and still are the majority, speaks of Muslim tolerance.  The fact that Jews throughout the centuries fled Christian lands and took refuge in Muslim countries demonstrates beyond a doubt Muslims’ respect of non-Muslims’ beliefs. 

I do insist that the reform of Islam is urgently needed.  But this is not the business of Jews nor Christians.  It is a Muslim problem.  It requires a Muslim solution.  It must be addressed and dealt with as a Muslim concern.  Christians and Jews have their own enormous problems to acknowledge and resolve. 

George W. Bush has been pushing for a new Islam that welcomes occupiers as liberators and labels oppression as democracy.  He is promoting an Islam that requires his adherence to turn the other cheek to U.S. and Israeli soldiers, who are ordered to kill, maim, torture, burn and destroy.  He has been working hard to restrict Islam to spirituality, only to issues that deal with God and not man. 

No jihad!  Jihad is not suicide, which is a great sin in Islam, but a struggle against injustice, oppression, occupation and aggression.  Hitler, who proclaimed himself a “Christian” and a fighter for “his Lord and Savior”, didn’t claim to have spoken to God.  George W. Bush did make such a claim.

“God told me to strike at Al-Qaeda and I struck them.  And then he instructed me to strike at Saddam, which I did.  And now I am determined to solve the problem in the Middle East.”

However, God warned Bush, “This crusade, this war on terrorism, is going to take awhile.” 

Here Bush’s destructive god is right. 

“The mother of all battles” will continue until all foreign troops return home.  His “obedience” to his killer god has resulted in the murder of over a million Iraqis.  Iraqi death due to war and economic sanctions are three and a half million.  Iraqi orphans number five million and widows are three million.  Six million people fled Iraq or were displaced.  Museums, libraries and educational institutions were bombed and ransacked.  Their contents were stolen or burned.  Thousands of scholars and scientists were assassinated.  Seven thousand years of human civilization has been leveled to the ground.  The only ministry building that was left standing is the Ministry of Oil.  What a coincidence! 

What about Western achievements the Pope attempts to protect?  The Church cannot take credit for the awakening, enlightenment, progress and freedoms men and women enjoy in the West today.  On the contrary, the Church resisted and continues to resist reform and change until this very moment.  Muslim leaders who enjoy the support and blessing of the United States are the obstacle for social change and development.  The Saudi dynasty continues to forbid women from driving and deny Saudi citizens the right to vote. 

However, Islamic reform is taking place slowly but steadily.  Polygamy was outlawed in Tunisia.  Dr. Hassan al-Turabi, a former head of the Sudanese National Assembly and one of the most influential thinkers that I’ve had the honor to meet several times, issued a fatwa, a religious ruling, which gives the right to Muslim females to marry non-Muslims, and for women to lead Muslim prayers.

Revolutionary change is taking place in Iran, U.S. enemy number one.  A divorced housewife has the property right to a half of the wealth her husband amassed while being married.  Sex change is legal.  The surgery is paid for by the state.  Four Muslim countries, Turkey, Pakistan, Bangladesh and Indonesia had women as heads of state. 

The Pope wants Muslims to tailor Islam to fit Judeo-Christians values.  However, in terms of peace, universal brotherhood, equality, freedom, logic and simplicity, Islam is far more rational and progressive than Christianity and Judaism.  No Vatican.  No sainthood.  No priesthood.  No present day miracles.  No spiritual healing of the sick.  Those who may claim to have the power of healing end in a mental institution or a jail. 

The Old Testament, an integral part of the Bible, as described by Christian and Jewish researchers and historians, is filled with blood and sex.  The God of Israel, Jehovah, orders his “Chosen People” to destroy, burn, kill, enslave and rape non-Jewish virgins. 

Furthermore, Islam’s religious affairs are not merely addressed by a hierarchy of clerics.  Islamic affairs are not confined to graduates from al-Azhar University or other Islamic institutions.  As a matter of fact, the greatest Muslim scholars are intellectuals, such as writers, physicians, engineers, lawyers, and other professionals.

According to an interpretation of the Old Testament, Noah’s three sons were the founders of the populations of the three known continents, Japheth/Europe, Shem/Asia, and Ham/Africa.  Ham’s children had been “blackened” by sin and a curse.  Ham made fun of his lying down, drunk and naked father.  Noah’s two other sons who covered him were blessed.  Their descendents were not black. 

In Islam black is not a curse but a beautiful color in the rainbow of the human race.  Muhammad declared that all men are equal.  The Quran says, “O mankind!  We (God) created ye from a single (pair) of a male and female, and made ye into nations and tribes, that ye may know one another, (not that ye may despise each other).  Verily, the most honored of you in the sight of God is he who is the most Righteous of you.”  Chapter 49, verse 13.

Islam has no confession and no intermediary.  A man, a woman or a child has a direct and private line of communication with God, free of charge, anytime and anywhere.  In the Quran, God stresses that He is close to all.  He responds if he is called.  In Islam, no one represents God on earth.  No one is infallible.  Muhammad, Jesus, Moses and all prophets are not divine, but humans.  All efforts and promises for a better life made by the Vatican and other Christian groups to convince Muslims throughout the world to convert have failed. 

What disturbs Christian missionaries is the fact that Islam today is the fastest growing religion.  According to the Seattle Times, shortly after noon on Fridays, the Rev. Ann Holmes Redding ties on a black headscarf and prepares to pray with her Muslim group.  Redding, who until recently was director of faith formation at St. Mark's Episcopal Cathedral, has been a priest for more than 20 years.  Now she's ready to tell people that, for the last 15 months, she's also been a Muslim. 

To multiply the number of his constituents, Benedict, in his visit to Latin America last year, demanded from its poverty stricken natives not to use condoms.  When it comes to sex, what or how, in the privacy of their bedroom, has always been an intimate affair of a married couple, not the Muslim clergy. 

Religion, particularly Judaism and Christianity which were written with fire and blood, have brought more evil and less good to humanity throughout history.  Interfaith dialogue should not debate theology.  It should work to end death, destruction and misery.  Dialogue should concentrate on building bridges of good will and coexistence.  It should put less emphasis on God and more on our fellow man. 

Muslims are condemned for their rejection of Western values.  The question is why should they accept Western values?  They have their own values that were developed over seven thousand years of civilization. 

The decision to drop the two atom bombs over Hiroshima and Nagasaki took, according to President Truman, a snap of a finger.  Non-whites’ life is worthless. 

A couple of weeks ago, in Israel, actually in occupied Palestine, a young woman was savagely beaten by five of her fellow students of the Torah because she refused to move to the back of the bus. 

Muslim men promptly evacuate their seats for women, anytime and anywhere.  Muhammad assured his followers that Paradise is underneath the feet of mothers and entry is allowed only by their blessings and approval.  Those values should remain.

With the collapse of the Soviet Union, Islam has replaced communism as an imaginary enemy and thus justified the astronomical military spending in service of big business.  It does not take a nuclear or a space scientist to conclude that the 911 tragedy was a home-made conspiracy.  It is naïve to believe that a man with a turban on his head and a cane in his hand hiding eleven thousand miles away in the caves of Tora Bora was responsible for such an almost impossible mission.  51% of the American people question the official version.  An independent commission of scholars, scientists, engineers and experts on demolition and intelligence should be established to find the truth and bring the criminals to justice. 

What about Islamic “radicalism”?  Fifty years ago, in most Arab countries, one could seldom see a Muslim girl or a woman covering her hair.  Today, one can rarely encounter a Muslim female without a headscarf.  The veil, which covers the face, is not a religious requirement.  Those who impose it, as well as the women who accept it, bring shame and disgrace to the overwhelming majority of Muslims.  Muslims females wear the scarf mostly by choice.  It is mainly a sign of political protest.  It is a rejection to Western values, Western culture, Western domination, Western hypocrisy and Western occupation.  It is a stand against theft of resources, ethnic cleansing and genocide to which Muslims are subjected. 

Muhammad said, “If you see evil, your duty is to stop it by your hand.  If you cannot, you must oppose it by your mouth. But if you cannot, you should undo it in your heart.” 

In Muslim lands, Muslim fighters oppose U.S. and Israeli tanks and bombers with guns, and sometimes by an explosive belt. 

In the Quran, God says, “Think not that those who fall while resisting aggression will ever die.  They are alive, in the company of their Lord.” 

Muslims believe that that is the highest form of martyrdom and the greatest honor.

Authors Bio: Arab American writer, activist

Greek Travellers in India

This column by a Pakistani Author, Salman Rashid, ran through the Indian e-lists like wildfire. It was quite an interesting read indeed. Talking about an Indian King named as Porus who stood up to Alexander / Sikander. He was defeated in an epic battle but after the battle, bloodied, battered but not unbowed, he was asked by Alexander as to how did he want to be treated? He answered proudly, "As one King would treat another". Well, the story goes that he was honourably treated. So far so good.

But more curiously, Salman Rashid refers to a chap called as Apollonius, there seems to be a bit of a debate over his going on's. Despite the interesting story about the murals on the palace walls, his own story is much more interesting. Apparently he was considered to be at par with Jesus, or at least, the Romans said he was. In some cases, he was considered to be superior to Jesus.

He was also known to the Ancient Indians, the medieval Islamic World, the Ba'hai faith, etc. Amazing how things are connected!

So interesting, just read his entry in Wikipedia and happy reading!.

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Why I am not impressed by the saga of the Teddy Teacher in Sudan

I am not impressed at all with this entire episode. Not one bit. The woman was legally charged, sentenced, imprisoned and will be deported on the completion of her sentence. Which bit is wrong? I do not see anything wrong.

Remember, she is a British Citizen. Sudanese citizens in the United Kingdom are not tried by Sharia. If there was a crime committed by a Sudanese in the UK, would the Queen pardon him/her because his crime was not considered as a crime in Sudan? No. So why are we expecting her to be pardoned and released?

Also, these protests by British Muslims in the UK. And the attempts by the 2 Muslim peers. That is totally irrelevant to me. Very nice to read and hear but totally irrelevant. If I was arrested for the same crime in Sudan, how would the reaction be? How about a Jew? Or a Christian? Or an Atheist?

The fact that the British Muslims are saying, not in my name, again is totally irrelevant as the Sudanese Islam is totally different from the British Islam. It would be like me complaining about the death of starfish in the Fiji reefs simply because we both have DNA. Yeah? so? what's the big deal?

Do you see where I am coming from? If anything does happen. I want the British Government to take the lead so that British Citizens know that their rights are guaranteed irrespective of their religion, ethnicity or what have you. In any case, let this be a reminder of what I said before, stay out of that armpit of the world.

Goldman Sachs in the cross-hairs

For obvious reasons, I cannot comment on this story but I found it very amusing! :)

Read and Chuckle!

--------------------------------------------------------------------------------
December 2, 2007
Everybody’s Business
The Long and Short of It at Goldman Sachs
By BEN STEIN
FOR decades now, as a writer, economist and scold, I have been receiving letters from thoughtful readers. Many of them have warned me about the dangers of a secret government running the world, organized by the Trilateral Commission, or the Ford Foundation, or the Big Oil companies or, of course, world Jewry.

I always scoff at these letters. The world is far too complex a place to be run by any one group. But the closest I have recently seen to such a world-running body would have to be a certain large investment bank, whose alums are routinely Treasury secretaries, high advisers to presidents, and occasionally a governor or United States senator.

This all started percolating in my fevered brain last week when a frequent correspondent, a gent in Florida who is sure economic disaster lies ahead (and he may be right, but he’s not), forwarded a newsletter from a highly placed economist at Goldman Sachs named Jan Hatzius.

That worthy scholar recently wrote a detailed paper about how he thought the subprime mess would get worse and worse. It would get so bad, he hypothesized, that it would affect aggregate lending extremely adversely and slow down growth.

Dr. Hatzius, who has a Ph.D. in economics from “Oggsford,” as they put it in “The Great Gatsby,” used a combination of theory, data, guesswork, extrapolation and what he recalls as history to reach the point that when highly leveraged institutions like banks lost money on subprime, they would cut back on lending to keep their capital ratios sound — and this would slow the economy.

This would occur, he said, if the value of the assets that banks hold plunges so steeply that they have to consume their own capital to patch up losses. With those funds used to plug holes, banks’ reserves drop further. To keep reserves in accordance with regulatory requirements, banks then have to rein in lending. What all of this means — or so the argument goes — is that losses in subprime and elsewhere that are taken at banks ultimately boomerang back, in a highly multiplied and negative way, onto our economy.

As the narrator in the rock legend “Spill the Wine” says, “This really blew my mind.”

So I started an e-mail correspondence with Dr. Hatzius, pointing out what I believed were a few flaws in his paper. Among them were his hypothesis that home prices would fall an average of 15 percent nationwide (an event that has never happened since the Depression, although we surely could be headed in that direction), and that this would lead to a drastic increase in defaults and losses by lenders.

This, as I see it, is a conclusion that is an estimation based upon a guess. I found especially puzzling the omission of the highly likely truth that the Fed would step in to replenish financial institutions’ liquidity if necessary. In a crisis like that outlined by the good Dr. Hatzius, the Fed — any postwar Fed except perhaps that of a fool — would pump cash into the system to keep lending on track.

I mentioned this via e-mail to Dr. Hatzius. He generously agreed that there was some slight merit to my arguments and that he was merely pointing out tendencies and possibilities (if I understand him correctly).

BUT forecasting is tricky, and I have a hard time believing that financial events to come will be qualitatively different from those that have already happened.

I do want to emphasize Dr. Hatzius’s gentlemanliness and intelligence. But I also want to emphasize that, as I see it, his document was mostly about selling fear. A spokesman for Goldman Sachs categorically denies this point and says that the firm’s economic research is held to the highest levels of objectivity and that its economists’ views are completely independent.

As I interpret it, Dr. Hatzius was saying that the financial system would possibly not be able to adjust to a level of financial losses that are large on an absolute scale but small compared with aggregate credit or the gross domestic product. He is also postulating that lenders would have to retrench so deeply that lending would stall and growth would falter — an event that, again, has not happened on any scale in the postwar world, except when planned by the central bank.

In other words, with the greatest possible respect to Dr. Hatzius, his paper is not really what I would call a serious overview of the situation. It is more a call to be afraid and cautious based on general principles that he embraces and not on the lessons of history. (In this respect, he is much like many economic journalists and commentators who sell newsprint by selling fear. The common cause of journalists and Wall Streeters in this regard is a subject I will address in the future.)

Now, let me make a few small points here and then get to my own big point.

Goldman Sachs is a huge name in terms of moneymaking and prestige. I totally understand the respect it receives for its financial dexterity. The firm is a superstar in that regard, and I, a small stockholder, am grateful. But it has never been clear to me exactly why its people are considered rocket scientists in any other area than making money.

Dr. Hatzius’s paper is a prime example of my puzzlement. It shows extreme intelligence but basically misses the point: yes, there are possible macro dangers, but you have to go all the way around Robin Hood’s barn to get to them, and you have to use what I think are extremely far-fetched hypotheticals to get to a scary situation. (This is not to diminish the real risks in today’s economy, I’m just not as gloomy about them as Dr. Hatzius.)

Why, then, is his document circulating? Perhaps as a token of Dr. Hatzius’s genuine intelligence, which is fine. But to me, his paper seemed like a selling document in the real Wall Street sense of selling — namely, selling short. (Dr. Hatzius notes that he has long been bearish on housing, since faraway 2006, but I respectfully note that that is a lot different from predicting a credit catastrophe. The spokesman for Goldman also noted the company’s bearishness on housing since 2006. He also noted that in the recent past, Goldman Sachs has moved to a considerably larger short posture and that the firm is net short.)

More thoughts came to me as I read a recent piece in Fortune by my colleague Allan Sloan, a veteran financial writer. Mr. Sloan traces the life and death throes of a Goldman Sachs-arranged collateralized mortgage obligation. He shows how truly toxic waste was sold to overly eager investors who now have major charge-offs, and he also points out that some parts of the C.M.O. were indeed safe and were either current or had been paid off.

But what leaps out at me from this story is that Goldman Sachs was injecting dangerous financial products into the world’s commercial bloodstream for years.

My pal, colleague and alter ego, the financial manager Phil DeMuth, culled data from a financial Web site, ABAlert.com (for “asset-backed alert”), that Goldman Sachs was one of the top 10 sellers of C.M.O.’s for the last two and a half years. From the evidence I see, Goldman was doing this for years. It might have sold very roughly $100 billion of the stuff in that period, according to ABAlert. Goldman was doing it on a scale of billions even when Henry M. Paulson Jr., the current Treasury secretary, led the firm.

The Goldman spokesman would not comment on this except to note that other firms sold C.M.O.’s too.

The point to bear in mind, as Mr. Sloan brilliantly makes clear, is that as Goldman was peddling C.M.O.’s, it was also shorting the junk on a titanic scale through index sales — showing, at least to me, how horrible a product it believed it was selling.

The Goldman Sachs spokesman said that the company routinely shorts the securities it underwrites and said that this is disclosed. He noted candidly that Goldman is much more short in this sector than usual.

Here is my humble hypothesis, even after talking to Goldman: Is it possible that Dr. Hatzius’s paper was a device to help along the goal of success at bearish trades in this sector and in the market generally? His firm says his paper, like all of its economists’ work, was not written to support any larger short-trading strategy. But economists, like accountants, are artists. They have a tendency to paint what their patrons, who pay them, want to see.

From what I have observed over the years, Goldman has a fascinating culture. It is sort of like what I imagine the culture of the K.G.B. to be. You always put the firm first. The long-ago scandal of the Goldman Sachs Trading Corporation, which raised hundreds of millions just before the crash of 1929 to create a mutual fund, then used the fund’s money to prop up stocks it owned and underwrote, was a particularly sad example. The fund, of course, went bust.

Now, obviously, Goldman Sachs does many fine deals and has many smart, capable people working for it. But it’s not the Vatican. It exists to make money for the partners and (much farther down the line) the stockholders. The people there are not statesmen. They are salesmen.

To my old eyes, the recent unhappiness about mortgages and Goldman’s connection with them are not examples of sterling conduct. It is bad enough to have been selling this stuff. It is far worse when the sellers were, in effect, simultaneously shorting the stuff they were selling, or making similar bets.

Doesn’t this bear some slight resemblance to Merrill selling tech stocks during the bubble while its analyst Henry Blodget was reportedly telling his friends what garbage they were? How different would it be from selling short the junky stock that your firm is underwriting? And if a top economist at Goldman Sachs was saying housing was in trouble, why did Goldman continue to underwrite junk mortgage issues into the market?

HERE is a query, as we used to say in law school: Should Henry M. Paulson Jr., who formerly ran a firm that engaged in this kind of conduct, be serving as Treasury secretary? Should there not be some inquiry into what the invisible government of Goldman (and the rest of Wall Street) did to create this disaster, which has caught up with some Wall Street firms but not the nimble Goldman?

When the Depression got under way, the government created the Temporary National Economic Committee to study just what had happened on the Street to get the tragedy going. Maybe it’s time for an investigation of just what Wall Street and Goldman did to make money as they pumped this mortgage mess into the economic system, and sometimes were seemingly on both sides of the deal.

Or is Goldman Sachs like “Love Story”? Does working there mean never having to say you’re sorry?

Ben Stein is a lawyer, writer, actor and economist. E-mail: ebiz@nytimes.com.


All this to be taken with a grain of piquant salt!!!

There is a case for subsidies!

I personally do not like subsidies, they distort markets and and and, the usual economist provisio's. With one exception. When the question is for sheer survival, then subsidies are not just subsidies but humanitarian aid. This is why I am very jaundiced about the agricultural round of the WTO or the debates about child labour which are very sterile, theoritical and do not apply to real world, extreme poverty situations. But read here and consider the case of subsidies.

But remember, subsidies become relatively expensive too soon too fast. And then the usual problems of only few people getting subsidies, too much of deficit financing, etc. etc. happens.

All this to be taken with a grain of piquant salt!!!

World Aids Day - some discrepancies

I am watching that admirable man, Nelson Mandela on TV, with his AIDS charity 46664 holding a concert on the occasion of World Aids Day. Quite an interesting global effort to drive solutions on this disease, but again, I am a bit curious about  which diseases get global attention and which do not. For example, see here. The graph of projected global deaths from various selected diseases on page 12 shows that cancers, heart diseases and strokes deaths are higher than AIDS. Another interesting factoid:

The total number of tobacco attributable deaths is projected to rise from 5.4 million in 2005 to 6.4 million in 2015 and to 8.3 million in
2030. Tobacco is projected to kill 50% more people in 2015 than HIV/AIDS and to be responsible for 10% of all deaths.

So you don't really get the same kind of attention to tobacco deaths across the world as you get for AIDS, do you? I suppose this is what is called as the diseases of affluence syndrome. Or is this because AIDS is more "sexy" than say "dysentery"? which kills more? See this (Annex Table 3). This shows how the deaths pan out in various regions by cause. Then map how many "World ???? Days" do you see against that mortality list. Curious, no?

Another couple of points for which I do not have any facts or figures but just struck me. Why there is more western media attention paid to AIDS in Africa compared to AIDS in say India?.

And another discrepancy, at the concert in Johannesburg, most of the attendees seemed to be white in colour. I am not sure why that was the case. Bit puzzling that.

All this is nothing to take away from the fact that AIDS needs to be fought, but wearing my economist hat, I am curious why resources are being invested in diseases which, prima facie, show lesser returns). I wonder if there is any kind of resource modelling aspect around? Then again, World AIDS Day is more "sexy" than World Dysentery Day??

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Islamic Banking in Pakistan

A good overview of what's happening in Pakistan in the area of Islamic Finance. It just shows the rapidly increasing popularity of this sector across all customer segments. One just wonders if the Pakistani regulators have sufficient knowledge and coverage to make sure the customers are protected. Remember BCCI?



Special Report on Islamic Finance



By By Shahzad Anwar
12/2/2007
KARACHI: The Islamic banking and financial industry is expanding at a fast pace in Pakistan, but numerous challenges such as liquidity management, lack of bankers with sound knowledge of Islamic finance and lack of awareness of Islamic banking among stakeholders are hindering smooth growth of this sector in the country.

The failed attempt of the 1980s at Islamic banking in Pakistan has created skepticism about Islamic banking practices in the country. Even now its impact is being felt on the current initiatives taken by the State Bank of Pakistan (SBP) and other banks as religious scholars, bankers, academics and the people are still skeptical about Islamic banking. So it is important to establish the credibility of Islamic banking to ensure the growth being envisioned and planned.

In the past thirty year, globally Islamic financial industry has made considerable progress. Particularly during the past decade, the Islamic financial sector (IFS) has registered a robust growth of around 15 to 20 per cent per annum, making it one of the fastest growing segments of the overall financial system.

At present Islamic financial industry encompasses all financial institutions and markets. There are dedicated regulatory, legal and academic institutions at the international level that are providing support in establishing IFS.

A number of institutions to set international standards in Islamic finance and banking have been established over the past few years. Some of these are the Islamic Financial Services Board, the Accounting & Auditing Organisation for Islamic Financial Institutions, the International Islamic Rating Agency, the International Islamic Financial Markets and the Liquidity Management Centre.

Once looked at as a patchwork of niches in the Gulf region and Malaysia, Islamic banking and finance is evolving into a global market. According to the International Monetary Fund, huge demand for Shariah-compliant financial products from a large number of Muslims, including immigrants in western countries, petro dollar, increasing oil wealth in the Middle East and the demand for Shariah-compliant investment and attractiveness of Shariah-compliant financial services for non-Muslim investors seeking ethical investments are the major factors that have contributed to the growth of Islamic Financial Sector.

Like most parts of the world, Islamic banking is witnessing unprecedented growth in Pakistan. The SBP is playing the leading role in the promotion and development of Islamic banking in the country. The establishment of a fully- fledged Islamic Banking Department at the SBP to focus on Islamic banking issues has provided the industry the necessary impetus for the growth and popularity of this sector.

An official of the SBP said that the central bank’s drive to promote Islamic banking as a parallel system, providing a level playing field with conventional commercial banking is aimed at building a broad-based financial system in the country to enable all sections of people to access financial services and play their due role in the overall economic development.

Today Pakistan has six fully-fledged licensed Islamic banks and 12 conventional banks have licences to operate dedicated Islamic banking branches.

All the big five banks in Pakistan are providing Islamic banking services. The total asset of the Islamic banking industry are more than Rs160 billion, which account for a market share of around 3.2 per cent. The market share of deposits, financing and investment, stands at 2.9 per cent and 2.5 per cent, respectively. Islamic banks have more than 200 branches in 32 cities and towns of the four provinces of the country.

Pakistan has several comparative advantages in Islamic banking. Since Muslims constitute 97 per cent of the country’s 160 million population, this provides a huge untapped domestic market base.

The growing popularity of Islamic products offered by Islamic banks and other commercial banks indicate the rise of this sector in future both in Pakistan and other countries.

“The SBP is planning to achieve a 15 per cent share, in deposits and assets, in Islamic baking by 2012, besides expanding and extending the outreach of Islamic banking products to a maximum number of consumers and the corporate sector. It also plans to introduce Islamic finance in micro finance, SME, agriculture and other sectors,” a high official of the SBP said while explaining the plans of the central bank to promote Islamic banking in the country. He said the SBP was striving hard to strengthen the regulatory framework in line with the best global practices besides establishing at least one specialised institution of international repute to develop human resources for the Islamic banking and financial industry.

Islamic banking is gaining financial depth as 10 to 15 per cent customers approaching Islamic banking institutions are said to be new to banking who stayed away from the conventional banking system because of their belief.

All this to be taken with a grain of piquant salt!!!

Another good thing coming out of the Belgian impasse

This is deliciously ironic and amusing. I love these EU buggers getting their comeuppance. If you don’t ask me and impose things on me, don’t blame me if I giggle at your difficulties! I quote:

As in all 27 member states of the European Union, three quarters of Belgium’s annual legislation emanates from the European authorities in Brussels. As everywhere, the Belgian Parliament just stamps its approval to the directives issued by the European Commission and submitted to the Parliament by the Belgian government. One result of the Belgian political crisis is that the caretaker government does not submit directives for approval to the Parliament. Hence, in its hour of ungovernability Belgium is now more sovereign than it has been in the past 50 years.

......

Considering the above, it is no surprise that the EU authorities are putting a lot of pressure on the Belgian politicos to stop their bickering and form a government as soon as possible. If there is one thing that the Eurocrats fear it must be this: a member state which regains its sovereignty, even, as would be the case in Belgium, if this happens by default because it is unable to install a government that submits the EU directives and EU treaties to parliament for rubberstamping.

Anyway, read and giggle!

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Would citizenship lessons help in minority integration?

Country after country is trying to increase the integration of its minorities by insisting on language lessons, citizenship lessons, examinations and the like. Does this work? Well, here's a paper which tries to shed light on the debate. Pretty encouraging, wouldn't you say? (mind you, one angle of further research would be to explore this via the ethnic - religious dimension - All minorities are not the same!)

 

The Civic Attitudes of Ethnic Minority Youth and the Impact of Citizenship Education

Author: Jan Germen Janmaat

Published in:  Journal of Ethnic and Migration Studies, Volume 34, Issue 1 January 2008 , pages 27 - 54

Abstract

This paper compares the civic attitudes of migrant and native youth in five West European countries, and explores the effect of citizenship education on the civic orientations of migrant children. Use is made of data from the IEA Civic Education survey. This survey involved a large study among 14-year-olds in 28 countries. The paper finds that migrant youth generally are at least as supportive of civic values as the ethnic majority. They do not embrace the civic notions of patriotism, institutional trust and gender equality to the same extent as the dominant group, though. Differences between the two groups on gender equality and to some degree also on institutional trust disappear, however, when social background variables are controlled for. It is concluded that differences between the allochtonous and autochthonous groups in the espousal of civic values are mostly a reflection of social differences and that migrant cultures are not obstructing the adoption of these values. This contradicts the conservative notion that civic values are specific to Western cultures and therefore incompatible with migrant cultures of other origins. It is further concluded that ethnic minority youth are likely to benefit more from citizenship education than the majority group.

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More wonderful economics from Zimbabwe

Zimbabwe has released a "People's Budget". Read and weep, I don't have words to comment on this bizarre step! And then you had thousands of Zimbabweans celebrating the Great Leader's leadership and wanting him to rule again next year. People get the leadership they deserve?

 

Presenting a so-called "people's budget" to parliament yesterday, Samuel Mumbengegwi, the Zimbabwe finance minister, devalued the Zimbabwe dollar by some 99 per cent, while forecasting a return to positive economic growth in 2008 accompanied by a slowdown in inflation.

With parliamentary and presidential elections scheduled for next March the tag "people's budget" is justified by cuts in personal tax, the zero rating for value added tax purposes of pork products - now the only meat available for low-income consumers - and a long list of government spending pledges designed to "kickstart" the economy.

Political analysts say the budget is mostly irrelevant, since Zimbabweans in urban areas will not believe the numbers, forecasts or promises.

But they agree that, notwithstanding rapidly worsening hyperinflation and country-wide shortages of food, fuel and electricity, President Robert Mugabe is on course to win a comfortable victory next March.

In a muddled presentation, in which the figures in his speech conflicted with those in the official Blue Book, Mr Mumbengegwi said the Zimbabwe economy had performed "remarkably well" despite "illegal economic sanctions imposed upon us by Britain and the west".

He claimed a 4 per cent increase in agricultural production, while acknowledging that output of maize, the country's food staple, fell 36 per cent. Exports, he said, rose 6.4 per cent in US dollar terms, though this still left them at about half their levels of the late 1990s.

In order not to offend Mr Mugabe's sensitivities on the issue, the finance minister camouflaged currency devaluation by referring only to the effective rate at which import duty would be levied.

From Monday customs duties on imports would be levied at an effective exchange rate of Z$270,000 to the US dollar, up from the $30,000 figure announced only three months ago.

Mr Mumbengegwi admitted that it had not been possible to calculate an inflation figure for October with the revealing comment that "many items included in the consumer basket have not been available in the shops".

Economists say it is impossible to take many of the budgetry numbers seriously given the discrepancies in the official figures and the huge inflation-driven variance between original and revised budget figures for 2007. These too are incomplete, with no budget deficit figure, nor an estimate of gross domestic product for 2007.

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