All entries for September 2008

September 27, 2008

Short Selling

Writing about web page

As per my basic finance knowledge, "short selling" is defined as selling a security, already being traded in any of the organised exchanges across the globe, without effectively owning it (hence it is usually borrowed from a market-maker/stock-broker), in the hope that it will fall in value, thereby allowing one to buy it back at a lower price at a later date to return the borrowed security to the broker/market-maker. Thus effectively hedging oneself from expected dips in the stocks being traded on any organised exchanges across the globe. 

The possibility of selling a particular stock via such a mechanism adds to liquidity in the market of the particular stock, thereby artificially increasing the supply and further exhaserbating the downward spiral in the value of this particular security. This is why we see a control on such instruments in the financial markets nowadays:

As a result of the financial debacles in the west, we see that the the Securities and Exchange Commission temporarily banned "short-selling" in the stocks of 799 companies as highlighted in the press release on BBC [linked here]

Does this mean that even the SEC Chairman knows that short selling does more bad than good in the market?

September 26, 2008

Al–Salam Institute UK: New semester courses

Writing about web page

An annoucement I thought I'd share with my viewership

al-Salam Institute presents
Our new semester programme:

Sahih Muslim

Teacher: Dr. Mohammad Akram Nadwi
Date: Sundays; 26th October - 14th December 2008
Time: 1pm - 4pm
Venue:Cheney School, Cheny Lane, Headington, Oxford, OX3 7QH
Fee: £100 per term 
In this course Dr. Akram Nadwi will read the entire collection of Shahih Muslim in Arabic with a brief commentary in English. The introductary lessons will explain the methodology of Imam Muslim, the histroy of hadith compilation, the sciences related to studying hadith and the importance of Imam Muslim etc.

The course will complete with a khatam and an ijaza from Dr. Akram Nadwi for those students who regularly attend these classes.

Shafi'i Fiqh (Umdat al-Salaik)

Teacher: Shaykh Afifi al-Akiti
Text: Ahmad ibn Naqib al-Misri - The Reliance of the Traveller
Date: Sundays: 26th October - 14th December 2008 
Time: 5pm - 6pm 
Venue: Asian Cultural Centre, Manzil Way, Oxford, OX4 1GH

Fees: Free Entrance
In this class Shaykh Afifi al-Akiti will teach Shafi'i fiqh using The Reliance of the Traveller (Ahmad ibn Naqib al Misri), a classical Manual of Islamic Sacred Law translated by Noah Ha Mim Keller.

Umdat as-Salik (Reliance of the Traveller)
This text is a classic manual of fiqh. It represents the fiqh rulings according to the Shafi'i school of jurisprudence.

The appendices form an integral part of the book and present original texts and translations from classic works by prominent Shafi'i scholars such as al-Ghazali, Ibn Qudamah, al-Nawawi, al-Qurturbi, al-Dhahabi, Ibn Hajar and other, on topics of Islamic law, faith, spirituality, Qur'anic exegesis and Hadith sciences.

Logic (al-Mantiq)

Teacher: Dr. Akram Nadwi
Text: Maqasid al-Falasifah by Imam Ghazali
Date: Sundays: 26th October - 14th December 2008 
Time: 6pm - 7pm 
 Asian Cultural Centre, Manzil Way, Oxford, OX4 1GH
Fees: £50 Per term
Sharpen your mind by learning and applying the rules of classical logic and formalized thought. In this class Dr. Akram Nadwi will teach Logic (al-Mantiq) based on Maqasid al-Falasifah by Imam Ghazali.


Teacher: Dr. Akram Nadwi
Date: Sundays: 26th October - 14th December 2008
Time: 7pm - 8pm
Venue: Asian Cultural Centre, Manzil Way, Oxford, OX4 1GH
Fees: Free Entrance.
In this class, Dr. Nadwi will teach tafseer (exegesies) of the Qur'an based on the concept of thematic and structural coherence, which was developed by the great Indian scholar Mawlana Hamid al-Din Farahi (d.1930)
For further information/registration please visit our brand new website:

September 23, 2008

Rights of Women after Marriage in Islam

I just recently found about this fact and thought I'd share here:

A woman has the right to be maintained at the socio-economic status that she was accustomed to before she was married, unless she relenquishes that right herself. So if a woman is wealthy before and marries a wealthy man who can not maintain her at the status she was accustomed to before, she has the right on the grounds of shariah for divorce.

There is an understanding that women need help inside the house for domestic affairs, managing the children, etc. With regards to servicing the house, the scholars have said that she is not obliged to work within the house but is preferred if she is not working. In fact, it is not considered to be "disobedient" to be obliged to serve the guests of the man. These are the facts mentioned in the Shairiah in books of fiqh which were written centuries ago. Women get burnt out, tired and thus marriage gets deteriorated because of these things. But it works both ways, and the Prophet salalaualahywasalam warned us of the dangers of women as well refered to as Kufraan-al-Asheera that women can not appreciate what the man does. It works both ways, it is a two-way street, there is a type of women that you good to her all her life and then once you do something wrong, she will say "I never knew any good from you." In other words, that she forgets all what you have done your whole life. Thus caution must be from both sides of the relationship.

September 22, 2008

Belief in Devine Guidance

The foremost belief around which all the Islamic concepts revolve is that the whole universe is created and controlled by One, the only One God. He has created man and appointed him as His vicegerent on the earth to fulfil certain objectives through obeying His commands. These commands are not restricted to some modes of worship or so-called religious rituals. They, on the contrary, cover a substantial area of almost every aspect of our life. These commands are neither so exhaustive that straiten the human activities within a narrow circle, leaving no role for human intellect to play, nor are they so little or ambiguous that they leave every sphere of life at the mercy of human perception and desire. Far from these two extremes, Islam has a balances approach to govern the human life. On the one hand, it has left a very wide area of human activities to man’s own rational judgement where he can take decisions on the basis on his reason, assessment of facts and expedience. On the other hand, Islam subjected human activities to a set of principles which have external applications and cannot be violated on a superficial grounds of expediency based on human assessment.

The fact behind this scheme is that human reason, despite its vast capabilities, cannot claim to have unlimited power to reach the truth. After all, it has some limits beyond which it either cannot properly work or may fall prey to errors. There are numerous domains of human life where ‘reason’ is often confused with ‘desires’ and where unhealthy instincts, under the disguise of rational arguments, misguide humanity to wrong and destructive decisions. All those theories of the past which are held today to be fallacious, claimed, in their respective times, to be ‘rational’ but it was after centuries that their fallacy was discovered and their absurdity was universally proved.

It is thus evident that the sphere of work delegated to human ‘reason’ by its Creator is not unlimited. There are areas in which human reason cannot give proper guidance or, at least, is susceptible to errors. It is these areas in which Allah Almighty, the Creator of the universe, has provided guidance through His revelations sent down to His prophets. On the basis of this approach it is the firm belief of every Muslim that the commands given by the divine revelations through the last messenger (May God Be Pleased With Him) are to be followed in letter and spirit and cannot be violated or ignored on the basis of one’s rational arguments or his inner desires. Therefore, all the human activities must always be subject to these commands and must work within the limits prescribed by them. Unlike other religions, Islam is not confined to some moral teachings, some rituals, or some modes of worship. It rather contains guidance in every sphere of life including socio-economic fields. The obedience from servants of Allah is required not only in worship, but also in their economic activities, even though it is at the price of some apparent benefits, because these apparent benefits may go against the collective interest of the society.

Extract from “An Introduction of Islamic Finance” by Muhammad Taqi Usmani

Some great words of Muhammad Taqi Usmani, one of the great scholars of our present day time, who has worked extensively in the field of Islamic Financing.

Thus the question then arises: even though we know that our rational reasoning may be affected by our desires, how do we control them?

September 21, 2008

Tripple Filter

During the golden Abbasid period, one of the scholars in Baghdad, the capital of Muslim caliphate at that time, was reputed to hold knowledge in high esteem.

One day an acquaintance met the great scholar and said,

"Do you know what I just heard about your friend?

Scholar: Hold on a minute, before telling me anything I'd like you to pass a little test. It's called the Triple Filter Test.

The Man: Triple Filter Test?

Scholar: That's right, before you talk to me about my friend it might be a good idea to take a moment and filter what you're going to say.

That's why I call it the triple filter test. The first filter is Truth. Have you made absolutely sure that what you are about to tell me is true?

The Man: No, actually I just heard about it and ...

Scholar: All right, so you don't really know if it's true or not. Now let's try the second filter, the filter of Goodness. Is what you are about to tell me about my friend something good?

The Man: No, on the contrary...

Scholar: So, you want to tell me something bad about him, but you're not certain it's true. You may still pass the test though, because there's one filter left:

The filter of Usefulness.

Is what you want to tell me about my friend going to be useful to me?

The Man: No, not really.

Scholar: Well, if what you want to tell me is neither true nor good nor even useful, why tell it to me at all?

The following is a quotation from the Holy Qur'an Chapter 49 (Al-Hujurat) Verse 12:

يَا أَيُّهَا الَّذِينَ آمَنُوا اجْتَنِبُوا كَثِيراً مِّنَ الظَّنِّ إِنَّ بَعْضَ الظَّنِّ إِثْمٌ وَلَا تَجَسَّسُوا وَلَا يَغْتَب بَّعْضُكُم بَعْضًا أَيُحِبُّ أَحَدُكُمْ أَن يَأْكُلَ لَحْمَ أَخِيهِ مَيْتًا فَكَرِهْتُمُوهُ وَاتَّقُوا اللَّهَ إِنَّ اللَّهَ تَوَّابٌ رَّحِيمٌ

Rough english translation:

_O you who believe!  Avoid much suspicions, indeed some suspicions are sins.  And spy not, neither backbite one another.  Would one of you like to eat the flesh of his dead brother?  You would hate it (so hate backbiting).  And fear Allah (God).  Verily, Allah is the One Who accepts repentance, Most Merciful [Chapter 49 (Al-Hujurat) Verse 12]_

September 19, 2008

Worst Week for Wall Street

This is perhaps the worst week that Wall Street's experienced since the Great Depression. We have seen 

1.      Lehman Brothers go bankrupt. The biggest bankruptcy ever! 

2.      Fannie Mae and Freddie Mac bailed out by US Treasury - Together Fannie, Freddie provide nearly 50% of mortgages in US (4 Trillion dollars of mortgages outstanding) 

3.      Merill Lynch forcefully merged with Bank of America

4.      AIG, the biggest insurance company in the world bailed out by US Treasury. 

5.      Washington Mutual on verge of bankruptcy

6.      Yields on the 3 month US Treasury are a mere 3 basis points practically nothing

7.      Morgan Stanley considering merging with Wachovia!

8.      Already we have seen Bear Stearns collapse

What does this all mean to us? Reduced liquidity in the markets. Distressed selling and perhaps reduced appetite for risk. A spill over effect is already on its way towards the GCC countries as the markets are showing early signs of loss of stocks most notably property companies that have fallen by 50% in the last few weeks (Emaar, Aldar, Sorouh etc).

What this effectively means is that the US dollar will suffer tremendously. US dollar did recover recently against all other currencies, but for a brief respite as these events will trigger another recessionary period for the US and most likely the World economoy because of its interconnectedness in the global sphere.

September 11, 2008

Midnight prayers (Taraweeh) shelled with grenades!

Writing about web page

If this starts to happen across the country, I don't know if people will even turn to the mosques for obligatory prayers during Ramadan, let alone after it ends.

I just hope this country recovers from the turmoils of this so-called "War on Terror"

God save Pakistan

September 2008

Mo Tu We Th Fr Sa Su
Aug |  Today  | Oct
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30               

Search this blog


Most recent comments

  • nice info about forex thank you by forex forum on this entry
  • Yes…thought it might become useful as I had already written it. I will be adding more stuff inshAl… by on this entry
  • Shadow man! I didnt know this was on here! This is next level dude…..thanks :–) by koyas on this entry
  • You know at times we take our mortal lives,our parents & the loved ones around us for granted.We sat… by Munizae Iqbal on this entry
  • its not called khuwaar…its called committment ! by on this entry

Blog archive

Not signed in
Sign in

Powered by BlogBuilder