Microlending fails to stop poverty; Fed Buys 50% of Q2 Treasury; Economic Recovery and Trust
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Acrylicist
Sep 20, 2009, 11:41:56 PM9/20/09
to Time as Money
# Small change
Billions of dollars and a Nobel Prize later, it looks like
‘microlending’ doesn’t actually do much to fight poverty
In the world of international aid, microcredit is a rock star. The
practice of giving very poor people very small loans to start very
small businesses has been hailed as one of the very few unambiguous
success stories in the long, frustrating fight against Third World
poverty. The pioneer of the practice, Bangladesh’s Grameen Bank, has
disbursed more than $8 billion in unsecured loans, usually in amounts
under $100, to people traditional banks ignore. Along with a 98
percent repayment rate, Grameen has accrued an inspiring collection of
stories about its overwhelmingly female borrowers, whose microloans
allowed them to start up an embroidery or pottery business, or a snack
cart or a stand selling cell phone cards, and through such petty
entrepreneurship lift themselves out of poverty. “Small Loans, Big
Gains,” a 2002 Globe editorial on microcredit was titled.
... http://www.boston.com/bostonglobe/ideas/articles/2009/09/20/small_change_does_microlending_actually_fight_poverty/?page=full
# Federal Reserve Accounts For 50% Of Q2 Treasury Purchases
The degree of intermediation by the Federal Reserve in the issuance of
US Treasuries hit a record in Q2, accounting for just under 50% of all
net UST issuance absorption. This is a startling number, as the Fed's
$164 billion in Q2 Treasury purchases dwarfs the combined foreign/
household UST purchases of $101 billion and $29 billion, respectively,
over the same time period. In fact, the Fed was a greater factor in
UST demand than all three traditional players combined: Foreigners,
Households and Primary Dealers, which amounted to a $158 billion in
net Q2 purchases.
... http://www.zerohedge.com/article/federal-reserve-accounts-50-q2-treasury-purchases
# The Economy Will Not Recover Until Trust is Restored
A 2005 letter in premier scientific journal Nature reviews the
research on trust and economics:
> Trust ... plays a key role in economic exchange and politics. In the absence of trust among trading partners, market transactions break down. In the absence of trust in a country's institutions and leaders, political legitimacy breaks down. Much recent evidence indicates that trust contributes to economic, political and social success.
http://georgewashington2.blogspot.com/2009/09/economy-will-not-recover-until-trust-is.html
Billions of dollars and a Nobel Prize later, it looks like
‘microlending’ doesn’t actually do much to fight poverty
In the world of international aid, microcredit is a rock star. The
practice of giving very poor people very small loans to start very
small businesses has been hailed as one of the very few unambiguous
success stories in the long, frustrating fight against Third World
poverty. The pioneer of the practice, Bangladesh’s Grameen Bank, has
disbursed more than $8 billion in unsecured loans, usually in amounts
under $100, to people traditional banks ignore. Along with a 98
percent repayment rate, Grameen has accrued an inspiring collection of
stories about its overwhelmingly female borrowers, whose microloans
allowed them to start up an embroidery or pottery business, or a snack
cart or a stand selling cell phone cards, and through such petty
entrepreneurship lift themselves out of poverty. “Small Loans, Big
Gains,” a 2002 Globe editorial on microcredit was titled.
... http://www.boston.com/bostonglobe/ideas/articles/2009/09/20/small_change_does_microlending_actually_fight_poverty/?page=full
# Federal Reserve Accounts For 50% Of Q2 Treasury Purchases
The degree of intermediation by the Federal Reserve in the issuance of
US Treasuries hit a record in Q2, accounting for just under 50% of all
net UST issuance absorption. This is a startling number, as the Fed's
$164 billion in Q2 Treasury purchases dwarfs the combined foreign/
household UST purchases of $101 billion and $29 billion, respectively,
over the same time period. In fact, the Fed was a greater factor in
UST demand than all three traditional players combined: Foreigners,
Households and Primary Dealers, which amounted to a $158 billion in
net Q2 purchases.
... http://www.zerohedge.com/article/federal-reserve-accounts-50-q2-treasury-purchases
# The Economy Will Not Recover Until Trust is Restored
A 2005 letter in premier scientific journal Nature reviews the
research on trust and economics:
> Trust ... plays a key role in economic exchange and politics. In the absence of trust among trading partners, market transactions break down. In the absence of trust in a country's institutions and leaders, political legitimacy breaks down. Much recent evidence indicates that trust contributes to economic, political and social success.
http://georgewashington2.blogspot.com/2009/09/economy-will-not-recover-until-trust-is.html
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