[quote=pencilneck]Am I the only one who cynically thinks microlending may be a late stage symptom of a desperate credit bubble?[/quote]
I don’t think so. I think micro-lending is a niche that CAN work well IF it’s done in moderation.
Like any lending “innovation,” micro-lending has its place. But once it becomes too widespread – like securitization and sub-prime lending (generically) – then it will blow up just like every other lending innovation that moves beyond its natural (limited) niche.
The trick to all credit innovations is to realize their limitations. The problem is that the natural order of things is to push the innovation until it starts to fail. And by then it’s too late.
