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Travel to rural India and talk to a money lender. There was a nice much needed shake down. They were all sitting on cash that had to be pushed into bank account

by mos38 9y ago

Travel to rural India and talk to a money lender. There was a nice much needed shake down. They were all sitting on cash that had to be pushed into bank accounts. This is a long term net positive in shedding light on the shadow economy which has been exploiting the unbanked rural poor for the longest time.

ahamedirshad123 9y ago
just don't lie, for god sake http://www.thehindubusinessline.com/money-and-banking/indias-rural-economy-hit-hard-as-informal-lending-breaks-down/article9391669.ece http://www.thehindubusinessline.com/money-and-banking/indias...
- hu61 9y ago
  Wow so in your reality what was reported about money lending one year ago, one week after demonetization still holds? All the money lenders in India went into retirement is it? Go find an article on what moneylenders are doing today. They are still lending. But from their bank accounts not from under their mattress. Just blind reactions without knowing how the world works has become very fashionable today.
  - ahamedirshad123 9y ago
    Wow, You guys created account just to defend this disaster. So many new accounts today. Is that IT cell in play?
  - ahamedirshad123 9y ago
    This is after a month - http://www.business-standard.com/article/economy-policy/10-interest-rates-money-lenders-make-a-comeback-due-to-currency-shortage-116122601048_1.html http://www.business-standard.com/article/economy-policy/10-i...
intended 9y ago
I think that is suspect, do you have anything to substantiate that? Heres some actual data, which is very worrisome and is not getting the attention it deserves Microfinance data - >As shown in the table, PAR > 30 days has spiked drastically across most of the states. Compared to the figures for March 31, 2016, Uttar Pradesh and Maharashtra registered an incredible increase of nearly 100 times as on 31st March, 2017. States such as Rajasthan, Tamil Nadu, West Bengal, Gujarat, Punjab, Madhya Pradesh and Karnataka experienced increases between 11% and 22% compared to the much lower pre-demonetisation levels. By 31 December, PAR>30 days had increased from a meagre 0.5% in the previous quarters to around 8%. http://www.livemint.com/Opinion/jVE367mp7AamTbHD5dG0lK/Demonetisations-blow-to-microfinance-sector.html http://www.livemint.com/Opinion/jVE367mp7AamTbHD5dG0lK/Demon... This means that money lenders are quite likely going to get stronger, because this suggests very large distress at the bottom of the pyramid. And This data never shows up in GDP, by definition the unstructured part of the economy is not part of GDP figures. This has a knock on effect on demand, and therefore on economic growth. And recent news suggests that MNREGA funds have not been released by many states because they haven;t gotten them from the center. I think this is imperiling the BJPs chances of survival. I expected some loss of seats in the next election (I know that even the BJP top brass didnt expect a full majority during the last election.) but if these canaries in the coal mine are accurate, it suggests large distress which is still to come down the pipe.

by mos38 9y ago

ahamedirshad123 9y ago

just don't lie, for god sake http://www.thehindubusinessline.com/money-and-banking/indias-rural-economy-hit-hard-as-informal-lending-breaks-down/article9391669.ece http://www.thehindubusinessline.com/money-and-banking/indias...

hu61 9y ago
Wow so in your reality what was reported about money lending one year ago, one week after demonetization still holds? All the money lenders in India went into retirement is it? Go find an article on what moneylenders are doing today. They are still lending. But from their bank accounts not from under their mattress. Just blind reactions without knowing how the world works has become very fashionable today.
- ahamedirshad123 9y ago
  Wow, You guys created account just to defend this disaster. So many new accounts today. Is that IT cell in play?
- ahamedirshad123 9y ago
  This is after a month - http://www.business-standard.com/article/economy-policy/10-interest-rates-money-lenders-make-a-comeback-due-to-currency-shortage-116122601048_1.html http://www.business-standard.com/article/economy-policy/10-i...

intended 9y ago

I think that is suspect, do you have anything to substantiate that? Heres some actual data, which is very worrisome and is not getting the attention it deserves Microfinance data - >As shown in the table, PAR > 30 days has spiked drastically across most of the states. Compared to the figures for March 31, 2016, Uttar Pradesh and Maharashtra registered an incredible increase of nearly 100 times as on 31st March, 2017. States such as Rajasthan, Tamil Nadu, West Bengal, Gujarat, Punjab, Madhya Pradesh and Karnataka experienced increases between 11% and 22% compared to the much lower pre-demonetisation levels. By 31 December, PAR>30 days had increased from a meagre 0.5% in the previous quarters to around 8%. http://www.livemint.com/Opinion/jVE367mp7AamTbHD5dG0lK/Demonetisations-blow-to-microfinance-sector.html http://www.livemint.com/Opinion/jVE367mp7AamTbHD5dG0lK/Demon... This means that money lenders are quite likely going to get stronger, because this suggests very large distress at the bottom of the pyramid. And This data never shows up in GDP, by definition the unstructured part of the economy is not part of GDP figures. This has a knock on effect on demand, and therefore on economic growth. And recent news suggests that MNREGA funds have not been released by many states because they haven;t gotten them from the center. I think this is imperiling the BJPs chances of survival. I expected some loss of seats in the next election (I know that even the BJP top brass didnt expect a full majority during the last election.) but if these canaries in the coal mine are accurate, it suggests large distress which is still to come down the pipe.