Fw: Growth/Expansion of Micro Finance??? Good or Bad?

H. C. Covington (ach1@sprynet.com)
Fri, 5 Dec 1997 21:39:29 -0600


Subject: Growth/Expansion of Micro Finance??? Good or Bad?

-----Original Message-----
From: Riverbank1@aol.com <Riverbank1@aol.com>
Date: Thursday, December 04, 1997 11:38 PM


>Bob-
>
>Just a observation:  I don't think the assumption that making financial
>resources available those with lower incomes cannot be -in the long run- a
>profit center is inappropriate.
>
>Last night A&E 's Biography featured FW Woolworth.  100 years ago common
>thinking was that you couldn't make money selling things to the "common"
>people for 5 & 10 cents.   Now, the Walmarts of the world are both
profitable
>& the the norm.
>
>60 years ago no one thought you could lend mortgage money & get it repaid
>with borrowers who didn't have at least 20% down payment.   Now low down
>payment mortgages, in one form or another, are both profitable & common
>place.
>
>10 years ago no one  thought you could lend mortgage money & get it repaid
>with borrowers who didn't have perfect credit.  Now the "sub-prime/BCD"
>mortgage industry is both profitable and growing fast.
>
>I suspect, unless the availability of credit and its distribution is
>restricted by statute/regulators (a real concern in the last few years),
many
>profit driven micro-financers will flourish in the US in the years to come.
>
>Mike Slayton
>RIVERBANK Group
>Hinsdale, IL
-----------------------------------
H. C. Sonny Covington @ I CAN! America
Lafayette -  New Iberia, LA  70563-1722
(318) 364-6239  Fax 318-367-9141