Origin of & Solution to Global Financial Meltdown: An Islamic View
The meltdown of financial markets across the world is one of the most common characteristics of moderncapitalist economy. Starting with the stock market crash of 1901 through the great depression of 1930s to theBlack Monday of 1987, the Asian financial crisis of 1997 and finally the latest tsunami of global financial crisis,the history of major stock market crashes are undoubtedly a testimony of its nature. According to IMF, the worldhas witnessed more than 100 stock market crisis in last 30 years. However, with the endeavors of so manytalented academicians, policymakers, and researchers the reasons behind these crashes still remain unexplored.After almost 25 years nobody has a solid answer to the reasons behind stock market crash in 1987. Meetingsafter meetings, summits after summits, conferences after conferences of the world leaders, thinkers andacademicians in the form of DAVOS summit, G-8 summit, EU summits, G-20 summits etc. have failedmiserably to identify the root causes behind the crisis. At times the expectations of finding a common solution tothe problem from such high level summits have ended up with common blame-games while the crisis continuesto multiply as various economies enters into much painful long term recessions with human stories of sufferings,job loss and even suicide. Therefore, this article aims at uncovering the root causes of repeated form of globalfinancial crisis by critically investigating the philosophical and functional foundations of existing system offinancial economy. A detailed review of fundamentals, methods and facts about capitalism clearly highlights theinevitability of such problem to exist in existing financial economic model in the light of Islamic economicsystem.