May 16, 2006
It's a Magical Kingdom - the No-Loss Stock Fund
The Saudi king, in a shrewd political move, although one that does nothing to address the actual issues, has announced a risk free stock fund for Saudi citizens of modest means or maybe not so modest means. Actually it sounds like I win You lose trading scheme as described.
Posted by The Lounsbury at May 16, 2006 12:14 PM
Filed Under: Economic Development
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Leaving aside the logic behind this, or lack thereof, isn't it supposed to be un-Islamic for investments to be insulated from risk?
Posted by: dubaiwalla at May 16, 2006 03:45 PM
That's what fatwa shopping is for.
Posted by: The Lounsbury at May 16, 2006 04:21 PM
Risk-free stock fund.
Nope, still don't make sense.
I've said it three times to myself, and it refuses to compute.
Goes right in there with military intelligence, jumbo shrimp, and honest politician.
Posted by: pantom at May 16, 2006 11:13 PM
Hmmm, who knew you could get Ponzi sauce on a shawarma?
Seriously, I see a major scandal a-borning with this one.
Posted by: Alex at May 17, 2006 06:38 AM
Ah Pantom my man.
If you can off-load the risk onto the government....
Yes, Alex, the KSA government reaction smells a bit. I am sure investigation would be uncomfortable, so bribe the Saudi lower classes with risk free gain. Or apparently risk free game.
The reaction is just completely inappropriate as economic policy, but there it is.
Posted by: The Lounsbury at May 17, 2006 07:41 PM
Tricle down economics Saudi style. Come on people our king wants to please some of us, why are you so pissed off?
You do not understand Bedo-enomics, it comes with its own set of rules that are like chinese to all of you. You must read bedoenomics basics by Shaikh Al Rajihi to understand our economic policy, remember the agricultural miracles of the 1980's?
Posted by: Futurist at May 18, 2006 04:32 AM