I have to confess, I was a bit upset by the lead story under the fold of The Wall Street Journal today: A global surge in tiny loans spurs credit bubble in a slum.
That has attracted private-equity funds and other foreign investors, who've poured billions of dollars over the past few years into microfinance world-wide.
Microloans range from a few dollars to a few hundred. Tiny. The capitalists got involved with this "social experiment," becase its offers dependable returns. The granddaddy of all microlenders, the 30-year-old Grameen Bank of Bangladesh, reports repayment rates of nearly 98 percent.
Leave it to the capitalists to screw it up. The Journal article continues: