Best Not to Default on Your Loan
Published by Bob Foster
I am sure there are many people here in the U.S. who are thankful we do not have a judicial system like the one in Dubai. Dubai bases their judicial system on “sharia”—Islamic law—which is weighted heavily against the defendant…and is highly punitive.
As a result, someone who bounces a bad check in Dubai can spend as long as four years in prison. That also explains why around 40% of the inmates at the Dubai Central Prison are there because they defaulted on bank loans. Under Dubai law, most of the Wall Street movers and shakers would be in prison—indefinitely.
Moreover, some prisoners have to stay in prison beyond their sentence until their debts are paid. With this kind of judicial system it would seem likely that very few people would take on a debt without being absolutely positive they would be able to pay it back…no matter what.
Quite a contrast to the American mantra of “charge, charge, charge,” regardless of our ability to pay the debt…because we can always just walk away from our debt obligation if we can’t (or don’t want to) pay it. Or, if you are big enough, the government will pay it for you.
I wonder what would happen to our economy if there was a little more responsibility—with more dire consequences for defaulting—placed on investors…as well as the U.S. consumer?
Anyone have any thoughts?
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