Busted: Bankers and The Global Economy

April 20, 2008

Is Credit a Human Right?

U.S. banks have been quietly considering getting into the microcredit market in the effort to be more visionary in their growth. Besides, over the long haul, bankers see the growing microcredit market as a possible threat to their supremacy in the financial sector.

Banks in France, notably banks that began as village banks are deeply linked to the well-being of their community. For U.S. banks, that mindset is a considerable change in concept. French banks like Credit Agricole began to loan small amounts to the rural poor trapped by the old system of moneylenders.

Loaning to people without collateral is exactly the opposite approach that banks use when extending credit. Some French bankers like Muhammad Yunus believe that credit should be considered a human right. He created his bank by turning banking upside down. Yunus likes to loan to women and to people with no access to loans. He considers attitude as the collateral of banking. He loans to people with self-respect and trust. He extends the same courtesy, working around the world to benefit people that need money most, while working to smash unfair banking laws. He is a Robin Hood of bankers.

Goldman Sachs has already taken step to see if they can make a similar program profitable for themselves using the same models and ideas that some French bankers and microlending institutions are using. They plan to throw $100 million at an experiment to foreigners that need help. Is the plan being deployed as a method or a mindset for Goldman Sachs? There is a difference and you probably know the answer.

Unfortunately, the United States is being ignored for this approach. However, bankers may believe that the American population does not hold self-respect and trust in high regard. Honesty and trust may be the issue for spoiled Americans that believe that they are entitled to do as the please and that debts can be ignored when they become inconvenient. Bankruptcy over pride is always an option. Are Americans too sophisticated? Are Americans so corrupt and jaded? Whether banks will cozy up to the U.S. marketplace in such a way remains to be seen as the U.S. economy continues to display a greater disparity between “the-haves” and the “have-nots”.

Is microbanking a future double-digit profitaking event to be exploited by the banking and finance industry? Can big banks without a heart and the drive for profit use similar methods to drive double-digit profits and growth? Does the United States have a Robin Hood banker that has a real interest in building community over massive profits?


  1. Hi,

    Thanks to Google Alert on Muhammad Yunus, I found your remarkable blog – a US version of mine in London in the UK. Compare our categories!

    More blog speed to you!


    Comment by Sabine — April 21, 2008 @ 9:49 am

  2. Credit is a human right as far as I am concerned! Power to new thinking!

    Pingback by yunusphere — April 21, 2008 @ 9:52 am

  3. If indeed credit is a human right then the costs of allowing access to that right should be borne equally by all humans.

    As is, the more supposedly risky categories such as those considered as subprime or typical clients of micro-credit institutions, are shouldering an excessive part of that cost.

    Think about it… any subprime group of creditors us made up by only two types of borrowers, those that will not be able to serve their debts adequately and those that have to pay for that by paying an interest rate that is de-facto too high, given the evidence that they are duly serving their own debt. Any winners? In that group none. The only real winners are now those who classified as prime risks do not have any longer in solidarity share into as many of the costs that arise from those who cannot pay.

    In other words, in terms of health insurance, a subprime group of borrowers is nothing but a co-insurance plan among a group of persons that have been diagnosed with a special propensity to contract an illness.

    That this issue has been so much ignored serves as evidence that so many of our micro-credit promoting institutions have been captured by just bank bankers.

    Comment by Per Kurowski — April 22, 2008 @ 7:10 am

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