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India Microcredit Sector Faces Collapse From Defaults - NYTimes.com
India's rapidly growing private microcredit industry faces imminent collapse as almost all borrowers in one of India's largest states have stopped repaying their loans, egged on by politicians who accuse the industry of earning outsize profits on the backs of the poor.
NYT, 11/17/2010
Brilliant... so politicians are causing the collapse of the only credit system available to their constituencies by encouraging them to reneg on their commitments to pay back debt. Imagine if US Senators started telling homeowners here to stop paying their mortgages if they're underwater... overnight debacle, permanent misery.
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