Quote:
Originally Posted by IbnMardhiyah
Trading is a very small portion of the finance world. It didn't have much to do at all with the sub-prime crash. And as the actual numbers show, advanced mathematics are highly valuable when utilizing a variety of financial vehicles.
Even Islamically speaking, if you were trading based purely or largely on speculation it would come pretty close to haraam. So yes, having an understanding of advanced mathematics [for example as required to get into Renaissance] is paramount, whether from a strictly businss point of view or Islamic.
I don't see why you're belittling it, particularly when you have no experience.
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I dont see how you are arguing with me especially since you are making your own arguments without clarifying your own experience in trading, mathematics or statistical arbitrage.
Getting into any front office position requires extensive knowledge of math, yes, but as i said, math is hardly the essential tool in trading. Case in point, Bear Stears, your very own article. Lehman, Merrill, Citigroup all suffered BILLIONS in losses. Over a $100 billion have been written off by now, more to follow. You're actually trying to convince me, and yourself, that despite all the mathematicians at these organizations, they still suffered losses, but Mr. Paulson was more brilliant than the combined intellect of all these?
All investment banks have two main spheres, either Investment banking, or trading. Sub-prime crash was just that, trading, monetizing high risk loans and packaging them out to buyers. It was structured trading.
Islamically speaking, all activities of banks are by and large, haraam. The whole concept is solely based on time value of money, which has no basis in Islam. Islam only considers money/cash as a means of exchange. The preceding was wholly off-topic.