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The disturbing thing about this piece is that it seems to imply that a tsunami of credit cards will be a positive thing for India. How anyone can think this in
by nacker 14y ago
The disturbing thing about this piece is that it seems to imply that a tsunami of credit cards will be a positive thing for India.
How anyone can think this in view of the global debt crisis is puzzling. The smarter fraction of the population in the first world now tends to regard credit cards as akin to crack, opium, or junk food. Things the moderate use of which calls for unusual levels of self-discipline.
I'm sure the prospect of millions of new credit card slaves in India has its Shylocks salivating, but let's hope something has been learned about the consequences of failing to keep them under close scrutiny.
- npguy 14y agoAgree, one hundred percent. If the way housing loans work in India is a pointer, you will see a lot of scrutiny in the way the credit cards would be managed. Indian banks are decidedly conservative.
- RationalPi 14y agoNot really. It is much easier to obtain credit cards than bank loans in India. Infact banks constantly call the people offering credit cards (to the point where people become irritated). To get housing loans, you have to provide significant collateral. Net, consumerism and debt load is going to screw the largest middle class base...
- npguy 14y agoThat perception is wrong, before they issue the card, they request income proofs, do residence verification etc. Moreover, if payment is not made, there is a follow-up process that will put village moneylenders to shame. Credit limits are also set in a very conservative manner.
- train_robber 14y agoYou are talking about the scene 3 or 4 years back. There is a significant amount of background checks before credit cards are issued especially if you are not employed in a big brand IT company.
- pessimist 14y agoAccess to credit is a huge deal for people. How else to create a small business, tide over a health crisis, or make a big education investment? Right now poor people are at the mercy of pawnbrokers, loan sharks who often charge interest rates of 100%+ per year. Potentially access to reasonable rate credit cards is life-changing.
- nacker 14y agoIf you can't think of any way to create a small business other than by using a credit card, you probably shouldn't be starting a business. Making a "big education investment" on a credit card is insanity. The student loan debt crisis may well be the next domino to fall in the the US economic meltdown - it was half the motivation for the participants in Occupy: http://business.time.com/2012/11/29/is-the-student-loan-debt-crisis-worse-than-we-thought/ http://business.time.com/2012/11/29/is-the-student-loan-debt... Rates on credit cards are generally less than reasonable, and their policies are frequently abusive. And this is in America, not the "wild East". http://www.mybudget360.com/endgame-credit-card-nation-40-year-credit-card-bull-market-over/ http://www.mybudget360.com/endgame-credit-card-nation-40-yea... Watch, or listen to this, if you are concerned about India's future exploitation: http://www.democracynow.org/2010/2/23/robert_manning_credit_card_nation_the http://www.democracynow.org/2010/2/23/robert_manning_credit_...
- slurgfest 14y agoIndividual credit card debt is NOT what precipitated the global debt crisis.
- nacker 14y agoI didn't claim it was the only factor. Read this: http://seekingalpha.com/instablog/428250-michael-clark/605631-private-debt-caused-the-current-great-depression-not-public-debt http://seekingalpha.com/instablog/428250-michael-clark/60563...