Can a Black Swan 'Change' Obama?

Barack Obama gave a historic win to America, an event very hard to replicate anywhere in the world. People not just from USA , but from countries across the continents moved by his victory, his ability to reach the heights and to create hope.

Everybody knows he promised to bring 'change' for a better world with synchronizing assurance of his supporters singing with him- 'Yes, We can!'. It was such a rosy picture and I sincerely hope it stays that way.

Obama was very quick to assume responsibility and started to jump on the mess created by the 8 horrific years under Bush. Tasks to take on are unsurmountable.
The victory gave a chance for America's enemies to put him on test. Militant outfits in Iraq and Afghanistan sent out a message not much different than their previous ones; Russia wants to build a missile system near Poland; Iran was happy with his election (which might make Israel a bit nervous); un-employment reached 14 year high; Auto companies going bankrupt; and of course Wall street was not really happy with his election.

The first two initiatives Obama has taken were totally disappointing to me.

1. Stimulus package - which has not worked and never will
2. Appointment of Rahm Emanuel

So much for 'Change' and 'hope', that Rahm was appointed on chief-of-staff position?? A pro-war Zionist, Freddie Mac board member during its drive towards the cliff's edge, sitting in a position which decides what information President must get and also appoint people in key White house jobs. Aaah, Please!!

More questions arise:

• Will Obama govern by wisdom or ideology - polished version of Bush's way of governance?
  
• Can Obama's 'Change' handle a Black Swan, geo-political or financial??

A Black Swan event can land him in the same position as Bush was after 9/11. Such an event can come from geo-political means or economic means. Nobody knows. A major attack, a financial catastrophe, a preemptive strike on any nation in middle east...we never know who will test the waters in the present perception of US weaker financially.

Real change under Obama will be when he does not curtail freedom of people and start new fronts of war with same kind of warmongering as previous regime did. The trust factor can sweep many Americans towards him and it is quite dangerous.

On the economic front, If he goes on to increase taxes, it will be no better than what Hoover did before Great Depression. He has to realize that more Government involvement is the problem.

Obama is smart, has sense of judgment. But, real 'Change' will come when he does not rattle in such huge problems as he didnot during all the speeches he gave.

People are losing trust in Capitalistic system. If Obama fails to deliver, they might as well start questioning Democratic system.

Islamic banking in mainstream

The words like religion, morality must be funny words in science, economics included. Instead of people going by perceived notions, it would be better if taken an objective look into such matters. here is one example of religion gaining success in science of economics.

Islamic finance/banking/economics is into mainstream and also providing safe haven for economies affected by present credit crisis.

Islamic finance is best defined as "Central to Islamic finance is the fact that money itself has no intrinsic value. As a matter of faith, a Muslim cannot lend money to, or receive money from someone and expect to benefit - interest is not allowed. To make money from money is forbidden - wealth can only be generated through legitimate trade and investment in assets. Money must be used in a productive way."

Islamic assets are already a trillion dollar block, with annual growth of 10-15%, reports Investor chronicle.

The fact that Islamic laws prohibit paying and receiving interest doesn't mean that that they frown on making money or encourage reverting to an all-cash or barter economy. At its core, Islamic finance is about linking the return to productivity and the quality of the project, thereby ensuring a more equitable distribution of wealth, based around a contract that manages risk.

High standards of discipline and regulation are by nature embodied in Islam's economic principles.

Dan Taylor, Head of Banking at BDO Stoy Hayward, says: “As the risk profile of Islamic Banks is generally lower than conventional western banks, this presents a more solid option for both retail and institutional investors and suggests that dealings with Islamic financial institutions will grow dramatically as people switch to more secure products in this environment.”

But, its still a long way for Islamic finance to replace mainstream.