In the meantime, we might learn something from Islamic Law which does deal with banking (and finance). Speculation is verboten as is usury.
Business Week (11/24/08) wondered if "Islamic Finance may be on to something." But, the focus of the article was on how Islamic banks fared in the current situation of toxic debt. Well, "excessive debt" is not allowed.
One has to wonder how the western mind came up with the notion that leveraging was creative. Clever it may be; yet, stupid is another way to characterize the propensity to gamble away one's future.
Sharia-based methods do not mean not-modern, witness the debit-card offered by Mastercard that is compliant.
By the way, search at Business Week on 'Islamic Finance' and read more, if you are interested.
The current set of oops that is due to mis-cues, poor thinking, mathematical-malfeasance, greed, etc., cannot be other than a lesson on how not to do it. We do know how.
11/21/15 -- Why-does-the-Islamic-banking-system-not-charge-interest-on-loans-and-advances-What-are-their-alternative-sources-of-revenue?
10/17/2011 -- If we're to challenge Harvard on its duty, then we'll need to beef this up. For one, is education only operationally important, measured in bucks? Ah, so much to discuss.
06/20/2009 -- The Economist reports on an attempt to build a "truly global Islamic bank."
02/03/2009 -- It would do well to consider how the Islamic culture can add to the capitalism/socialism debates. One start might be to read about Islamic Economics, such as this insightful look at command versus free enterprise, albeit with other influences at hand.
01/18/2009 - We even need to look at why we need finance.
12/18/2008 -- Leveraging, in and of itself, is not bad.
12/01/2008 -- AME Info asks: Are Islamic banks the financial institutions of the future? There are two attributes of importance, elsewhere covered in these posts: asset-based system, closer to the real economy. The former pertains to the leveraging issue, in part. The latter has to do with the abstraction-phile leanings of the western mind as well as the fictional flavorings.