Academic

ANOTHER CREDIT COLLAPSE? India Microcredit Faces Collapse From Defaults. ?India?s rapidly growin?

By Glenn Reynolds

ANOTHER CREDIT COLLAPSE? India Microcredit Faces Collapse From Defaults. “India?s rapidly growing private microcredit industry faces imminent collapse as almost all borrowers in one of India?s largest states have stopped repaying their loans, egged on by politicians who accuse the industry of earning outsize profits on the backs of the poor.” Show me a credit collapse, and there’s probably a politician behind it somewhere . . . . On the other hand, if you loan money to people with no ready means to pay it back, you’re bound to face collapse. The earlier microcredit experiments made a big point of ensuring repayment, but that seems to have gone by the wayside, which is unfortunate.

UPDATE: Reader Phil Manhard notes that, as usual, The Onion got there first.

Full post as published by Instapundit.com on November 20, 2010 (boomark / email).