Credit Bubble in a Slum ?

Far away from the credit boom of USA from 2004 - 2007, both in distance and in time.

A front page article in the Wall Street Journal states that the micro-finance push maybe creating a credit bubble in India. What started as a social initiative, caught the eyes of investors due to higher returns. Micro-finance loans have interest loans to the tune of 24% - 39% and are generally given to women (more than 90%) who are supposed to be better repayers. Apparently the RBI (Reserve Bank of India) does not regulate interest rates in this market except for advising organizations not to charge too high rates.

Today the number of lenders offering micro-finance has jumped almost 400% from 50 in 2004 to more than 200 in 2008. NBFC (Non Banking Financial Companies) have entered the fray. The loaned amount has grown from less than 0.5 million to 2.4 million. As a result, atleast in some towns and villages there are too many lenders are chasing few good borrowers and - funds loaned for starting business are being used to buy TVs or spent on marriages. Apparently in some over-crowded markets - lending practices are lax; it is often difficult for lenders to cross-check with each other or to verify the utlisation of funds. I just hope the stories of Ramanagram are not being repreated across the country.

This is not to the say that the credit needs to Rural India are being met. Rural Indian economy has very few sources of funds and an even lesser understanding of financial products. I know this by virtue spending an year scaling my organization's distribution beyond metros. It will be really unfortunate if poor lending practices deprive the region and the people their chance for development.

The article published on August 13, 2009 written by Ketaki Gokhale is titled - A Global Surge in Tiny Loans Spurs Credit Bubble in a Slum. You can read it at the WSJ website, but a subscription is needed

The Talibanization of Pakistan-I

Read my take on the past and the present of the Talibanization of Pakistan published here. The next article in this series will explore what future may mean for the country.

Book Update : Gone with the Wind (Margaret Mitchell). I had always wanted to read this one. A wonderfully written love story against the backdrop of the old south, the Civil War and the abolition of slavery. A tale of survival and determination. The perspective is slightly tainted, through the eyes of rich white landlords. Nevertheless, it does capture the pain and hardships war caused in the Southern states of America. Having read it my only regret is why didn't I read it earlier. Imminently inspiring & re-readable over and over again.

British couple says CNN compromised them

Continuing from my last post, here is the official complaint by an British couple that thier safety was compromised by CNN, who broadcasted their cell phone conversatio. Now back home safely, Mrs Shaw says that they were safe till CNN stepped in.

  But the reason I would not want to talk to anyone is because our safety was actually compromised   by CNN, which broadcast where we were. The terrorists were watching CNN and they came down from where they were in a lift after hearing about us on television. For that reason I would appeal to the media to be very careful about what they broadcast. 

The couple's full story in  Walesonline & Huffington Post

Also there is this article in the Hindu citing the one captured terrorist that the goup had a state of the art GPS, several mobile phones & the fact that the Lashkar headquarters remained in touch with the group on a voice-over-internet (VOIP) service 

Mumbai terror attack - Are there any standards in Journalism ?

A tragedy of epic proportions and an indication how far & deep has terror taken roots in our society. A city hostage for three days. Gunmen out loose at ordinary citizen

The terror attacks in Mumbai took hostages in the city and outside. Guests in the Taj, Oberoi & the Jewish houses, Mumbaikers in the city & Indians in country & the diaspora worldwide, all glued to any communication they could get from anywhere. News channels Indian & those worldwide, newspapers national & international and the Internet & all other media of communication, all hostage to sights of terror.

But as I watched, I wondered how many of those deaths were caused the footage hungry media and common-senseless politicians. Indian home minister Shivraj Patil gave the exact number NSG personal & commandos sent to counter terrorists & also, the exact time when the operation would began. Sorry, but that not called sending men for an operation. Its probably like sending then on a death mission. Don't these politicians have any respect, any concern for men who risk their lives for the country.

The rest of damage was done by news channels. They have long got over any sense of responsibility to anyone I think. Consider those live accounts of operations, 'the operation is now on this floor', 'this many policemen & commandos coming in with directions'. It was done better than the masterminds of operation would have ever imagined when they were planning this. They relayed coverage with accounts of guest's whereabouts in Taj leading to the killing of more than one. The story was repeated again at the hostage crisis in the Jewish house. 'Yes there are hostages, these are the details of the men hostage & our information on the terrorists inside'. And if that was not all, we were fed with the detail that the Indian police, army & commandos  have decided to tackle the Taj & Oberoi first so the terrorists in Jewish Center could take a nap & rest be fresh before the combat. Of course the media would give them a timely warning before the operation were to begin, complete with the visuals of helicopter dropping of commandos and the exact number.that were coming. 

Imagine being a terrorist inside the building, all that information directly playing on the TV in front of you, or maybe the smart phone with which you watch TV on the Internet or if all that was not possible just a normal phone and someone relaying all that live coverage for you.  When told not to broadcast in live we had a jerk jouralist on NDTV 24X7 tell that the footage is not live as requested by the army. He proudly went on to add that , 'Its delayed by 6 minutes'. 

All this makes me wonder at the standards of Indian journalism. Do these people not know what should be broadcast and what shouldn't ? Or, do we only have men who can talk along and those can take camera footage? All of them without an iota of commonsense.  Or maybe its worse than that. They know all this and they chose to ignore it for high TRPs (viewers ratings). It is eyeball hungry journalism with no regards for the ethics of profession.

Almost 200 people dead & number of those injured varying with accounts as the exact count is unverifiable. 

Publish Post

I feel sorry for all this but most of all I am sorry for the death of morality, ethics & standards in journalism. May it rest in peace. And I worry, for the repeat of all this when a moment of crises comes next, for the someone whose morality is dead, wouldn't even realise when they make the same mistake yet again.