micro-finance bubble
A miniature version of the lead up to the global credit crisis is taking place in a much smaller scale in the world of Indian micro-finance. The leading events are pretty similar, except you can take off several zeroes from the sums involved in this case.
I remembered reading a while back that the original concept of micro-finance hinged on social pressure because your fellow villagers and friends would have be the guarantors of your loan, hence it would extremely awkward socially for you to default. From the article, I couldn't see any enforcement of this concept so it's unclear to me how the new concept of micro-finance is any different from strangers giving people small loans.http://online.wsj.com/article/SB125012112518027581.html
