In Malaysia and Indonesia, it was due to the Koran being a rather useful uniform commercial code, that gave trade advantages to the Sultans, and because the Portuguese were such vicious predatory religious fanatics, while the Muslims just wanted to make money. How times have changed. In India, as I understand it, many of the Muslims were former Hindu untouchables, that decided to opt out of a religion were they were treated like sh**t. Read my friend Bill Bernstein's book on the history of trade, and you can find out all about this stuff. I read the whole book in one sitting. I could not put it down.
You know Bernstein?
Yes. I actually "met" him on the internet, when he was a neurologist full time. Since then, he has become a money manager, written articles, been quoted often in the WSJ, and authored several books, a couple of which I helped edit and comment upon in a modest way. We also did quite a bit of financial research together, using the data base which French of Fama/French fame, gave Bill back in the 1990's, including in particular expected equity permia, and the issue of whether or not the value premia exists, and if so, whether additional risk attends it, and/or whether it is due to "irrational" behavior ala the Richard Thaler model. We also "invented" "Dunn's Law" together (Bill decided that "Dunn's Law" sounded catchier than "Bernstein's Law.")
I am going to see him again this September in Philadelphia at the Boglehead conclave that we have every couple of years in various places around the country.
I
love the internet.
Poll
