Salil Tripathi does a little research :
Grameen’s apparent success and the Wall Street’s cataclysmic failure are intertwined in two simple concepts: viability and transparency.....
Some may argue that there is no change of return of loan, and that increases the mortgage defaults in the US, but this doesn't apply to lendings from Grameen Bank due to :
Moral peer pressure compels the borrower to continue repaying his debt; the possibility of rolling over debt, or swapping credit cards, simply does not exist. That makes the loans viable, but they are relatively risk-free.
And contrasted with the American model:
Subprime lending for housing is different. People whose income levels are so low that it might take them decades, if ever, to buy even a modest home, are shown tantalizing images of neat, cookie-cutter houses in a new development in the farther reaches of suburbs. Sometimes, the borrower doesn't even need not provide proof of income.
And moreover, the founder of Grameen Bank, Mohammad Yunus gets a Nobel Peace Prize but the CEOs of the investment banks and other institutions get sacked from their jobs! Truly a contrast... What are your comments for the same? Do post your smart opinions too!!
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