I was wondering, as an extension to a thought initiated by a friend in a discussion: The gobal financial crisis that has engulfed the world has the western governments gear up for some collective action to set things right – regulations/controls/socialism/nationalisation are not bad words any more.
There was a blog post about the sub-prime crisis and lessons for microfinance back in June this year and nothing substantial since! My hypothetical question is – What if the Third World sub-prime bubble had imploded? Of course, I am referring to microcredit. What if microcredit had beaten the home loans in the race to a crisis? How do you think the governments of the world would have reacted? Would they have sanctioned the required millions (forget billions)? And what else?