Streetkid-run bank in New Delhi

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8 Responses to “Streetkid-run bank in New Delhi”

  1. luag says:

    Indonesia seriously needs this kind of bank as well…

  2. mscot says:

    That is awesome.

  3. BSD says:

    So while the rest of the world marches toward the cyberpunk future (Russia happily leading the way), India is skipping all that towards the post-cyberpunk future?

  4. Muppet says:

    I wonder if the children learn about fractional reserve lending, by which banks lend, and charge interest on, money they do not actually have , becoming filthy rich in the process. I wonder if they learn about the role of the World Bank in the plight of the Third World. ..

  5. zuzu says:

    @TWOSHORT

    apparently you do not understand what fractional-reserve lending means. the practice is essentially minting new money, as credit, to borrowers. for example, if a bank has received $1000 total from depositors, but then lends $10,000, it lending at a 1/10 (10%) fraction of their reserve. this ratio is pretty close to current USA regulations.

    normally this would constitute fraud, but banks are granted a legal privilege through the central banking system to do this.

    http://en.wikipedia.org/wiki/Fractional-reserve_banking

  6. TwoShort says:

    @MUPPET:
    Of course they learn about fractional reserve lending, that’s what a bank is. If you keep 100% of your deposits in reserve, you can’t very well lend anything.

    I am intrigued by the socio-linguistic implications of the phrase “filthy rich”. Do you suppose street kids in India associate wealth with a lack of cleanliness?

  7. travelina says:

    Very cool! Another micro-capitalism story I like is this one about setting up McDonald’s-style owner-operator franchises in Kenya to run “for-profit retail clinics that provide basic treatments for malaria, respiratory infections and worms”:
    http://www.forbes.com/healthcare/2007/10/11/africa-pharmaceuticals-ghana-biz-sci-cz_rl_1011healthstore.html

  8. Encik su says:

    Good kids

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