Indian Microcredit Industry About To Collapse?
[ Add A Comment ]Posted on November 17, 2010 by admin in Editorial & Opinion
Wednesday, November 17th, 2010In spite of the feelgood vibe associated with microfunding for the economically challenged people of the world, no-one’s going to be singing “Tiny Bubbles” if India’s massive microlending industry bubble bursts.
 Even with microlending, there are always strings attached. |
Wow. Just when I had stopped worrying about how the collapse of Ireland’s economy might trigger the broader collapse of the global economy (it turns out Ireland’s economy isn’t dead, it’s just resting ), now I have to worry about the collapse of India’s economy. After watching America’s banking system get gutted by smart rich guys loaning tons of money to people to buy houses they couldn’t afford, SOMEONE should have noticed the potential for the same to happen with the massive microcredit industry in India. The parallels are actually rather remarkable, except the consequences are much more dramatic. This Globe And Mail piece politely refers to how the poorly-regulated microloan industry in India has resorted to “usurious interest rates and coercive means” to operate. Meaning they’ve apparently been operating much like the local loan sharks everyone was happy to see them replace. This has led to suicides by microcredit-bankrupted individuals who are now being urged by Indian legislators to “strategically default”. Which then gives the banks a fright, because they’re exposed to the tune of $4 billion on all of this lending. The tragic thing on the human end of this scenario? The worst of these overextended borrowers who are choosing suicide as a solution may only owe as little as $2,000. Too bad the Gates Foundation and others didn’t speak up sooner about how the microcredit model was so flawed. For a refresher on how this sort of crisis can play out, see the graphic below. Read the rest of this entry »
The QE2, The Titanic, And Why I Didn’t Vote Last Week
[ 1 Comment ]Posted on November 6, 2010 by admin in Politics
Saturday, November 6th, 2010But I’m glad you were on deck screaming “I don’t think we should sink!” I’m sure it helped. Oh. And all these “bubbles” you keep hearing about? They’re normal when a huge ship is going down.
 Context here if you don’t get this joke |
Yesterday a friend asked me if I voted last week. I calmly said “nope”, to find myself on the receiving end of a laser-like liberal glare that screamed “how could you abandon us at this crucial juncture in history?“, but then out loud they said “Why the f— NOT? Are you RETARDED or something???” I then reminded my liberal friend that it’s not nice to say “retarded”, and went on to explain that my decision not to vote was part of my plan to accelerate my collapsitarian vision for a shiny new apocalypse. You see, what liberal, conservative, and especially that other bunch of voters seemed not to notice last week was the fact that Ben Bernanke had instructed Washington to print a bunch of money in a quantitative easing effort. For those of you not familiar with sophisticated economic terminology, 1 bunch=$600,000,000, and according to many, quantitative easing = bank bailout. To me the best part of this all is that since everyone’s calling it “QE2″, we no longer have to resort to that hackneyed “polishing the brass on the Titanic” line. The QE2, as you may recall, was the last of the great steam-powered luxury liners, whose only satisfied customers were probably the British soldiers that she ferried to the Falkland War. The debate will rage about this economic strategy until the results manifest themselves, but for one of the more balanced views of what’s going on (even if you do think he’s full of shibboleth) Paul Krugman sums things up here. And there’s one likely side effect of this cash injection that I find hilarious: in spite of the fact that if teabaggers had any idea what’s going on in the real world, they would be in a psychotic rage about the government printing a bunch of money at a time like this. But in their inexplicable ignorance, they’ll support it with every bone in their little heads, because clearly, if the rest of the world thinks an idea is stupid, it must be the patriotic thing to do. By the way, if you want to print your own money at will just like Ben, HowStuffWorks has excellent step-by-step instructions. Read the rest of this entry »
Health Care For Us, Or Wealth Care For Them?
[ Add A Comment ]Posted on February 26, 2010 by admin in Politics
Friday, February 26th, 2010I’d feel a lot better about buying insurance if I didn’t feel like I was supporting Wall Street’s gambling addiction.
I must confess to being a bit of a simpleton in some ways, so could someone please explain to me what the health care summit and the health care reform act have to do with reforming health care? And since when does someone “win” a summit meeting? I had to check the definition of the phrase to make sure I’m not crazy for asking that question. Personally, I’m a little stuck on a few ideas, one being that “fixing the health care problem” means that, well, someone will be fixing the health care problem, not just making sure that we all have an equal opportunity to take part in it. And by “it” I mean “the problem”. I feel odd finding myself aligning with a lot of Republicans (although I have pretty liberal social attitudes, I think I’ve formed my own little political party in my head) on an issue like the individual mandate. If I’ve already opted to not give my money to an industry that generates 20% of its revenue from my boss wanting me dead, why would I start now? Oh yeah. Because I’d get a tax penalty if I didn’t. This is starting to feel a little creepy. After being told that my tax dollars would be used to bail out the gambling-addicted banking and insurance industries, now I’m being told that if I don’t give them business, I’ll pay more taxes? Why do I feel like I’m trapped in some weird revolving door? Oh. It just might be the combination of the Goldman Sachs Government (they were negotiating a deal to acquire the treasury department last year, you know) and the influence peddling of the the Media Lobbying Complex. I’m glad I read a lot. It keeps me alertly apolitical. Everyone seems to have an informed opinion on health care, but if you really want to know what’s wrong with health care, ask a nurse.
Is Obama’s Proposed Bank Tax Purely Political?
[ 2 Comments ]Posted on January 15, 2010 by admin in Politics
Friday, January 15th, 2010Well OF COURSE it’s political, but something like it is certainly warranted. Or maybe we could do the old Roman thumbs-up thumbs-down thing, complete with lions and stuff.
If you’re a conservative, you may be finding yourself in a slightly untenable position right now. Your obligatory knee-jerk response to Obama’s new proposed tax on bailed out banks will be to say: “Sure. More taxes are the solution for everything for you ignorant weepy liberals“. At least that’s the stance of business-minded republicans like Tom Donohue, the CEO of the US Chamber of Commerce, who calls the plan a bad idea. So why is your position going to be untenable? Well, the first part of your problem is that if they’re not taxing the banks, they’ll be taxing you and your offspring for generations to come. And because the next part of your argument is going to be that that the banks won’t even feel it, or will pass the buck to consumers. Which suggests that either a.) The fees should be even higher, or b.) That we need to regulate the banks so they’ll stop raping the consumer and anybody else in sight that they’re not directly invested in. Granted, this is a complicated situation, and there’s a fair amount of political populism in the president’s proposal, but how could any American – other than a banker who just got his multimillion dollar bonus, of course – be against the idea of punitive measures against the bankers who created this entire travesty continuing to benefit from their failures and miscalculations? I mean, especially if you believe in Ayn Rand-driven laissez-faire capitalism like a good Republican should? Even Timothy Geithner says it’s sensible. Of course, he’s got his own problems, so maybe that’s some personal damage control at work. In any case, I have a better idea for dealing with the bankers. Put it to simple popular vote and see what the average hardworking American would do about it. I’m sure the results would be fairly grisly, but gratifying. What do you think?
Why I Don’t Care If The Health Care Bill Passes
[ Add A Comment ]Posted on January 3, 2010 by admin in Health & Wellness, Politics
Sunday, January 3rd, 2010America’s health care system is neither healthy, caring, nor a system. But the Health Care Bill certainly will present someone with a bill.
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When I’m in a hospital room, I usually have a |
I feel sorry for Barack Obama. Not only will history likely blame him for the long tail of the bank failures and bailouts for which the Bush administration was actually responsible, it will also likely blame him (because of the passage of the health care bill that has divided the country recently) for the continued malignancy that is our decrepit, bloated, and corrupt “health care system”. I put that phrase in quotes because I believe that – as the late Walter Cronkite once said – “America’s health care system is neither healthy, caring, nor a system“. While a bunch of Democratic congressmen who have nothing to worry about regarding their health care plans sit around patting themselves on the back for passing a health care bill that has supposedly been the dream of generations of Democratic politicians, the fact is that things won’t change for many, and we’ll still be left saddled with the most expensive and least effective health care in the developed world. The bill does NOTHING to fix what any intelligent person sees as the fundamental problem; it might in fact worsen it. Whether you describe the problem as being a result of government meddling and insurance, or as patient overuse of treatment because insurance will pay for it, or as a result of doctors requiring malpractice insurance, you will notice the word “insurance” keeps popping up. The fact is that the mind-boggling arrangements for billing and payment that exist today would be IMPOSSIBLE without the insurance industry supporting its piece of what really is an incredibly elaborate and blatant ponzi scheme being pulled off by an industry and a profession that operates under the ultimate smokescreen: an illusion of benevolence Read the rest of this entry »