this is getting interesting.
after SKS's antics and thugs rounding up and beating the pulp out of borrowers in andhra pradesh, i guess it's becoming pretty obvious that microfinance is yet another bit of snake oil.
shame. it sounded pretty good, 98% repayment and all.
4 comments:
it is another form of ponzi scheme like subprime mortgages.
If someone is unable to pay back, he/she should not be extended any credit in a business.
Helping financially based on human connections is altogether is a different matter.
I claim most innovations in finance end up in disaster usually for both creditor and debtors but at least debtors.
No oil. Just plain snake, Crotalis.
Finance is, unfortunately, where most of engineering happens these days. It is, in summary, can be called BS.
The very idea of easy money, which mircofinance prophets propound strikes at the very roots of the concept of responsible lending.
anything that is created to "help the poor" is fraud with the intent of getting the government to funnel money into their schemes. examples include grameen bank, simputer, 100 dollar laptop from mit, and kapilt sibal's 30 dollar computer.
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