There is no doubt that there is something to microcredit, though there are critics. But have we let the hype behind the idea, (see Rob's post about Yunus' Nobel Peace Prize) blind our ability to see its faults?  This Forbes article, Easy Money, goes deeper into some of the fallacies of microfinance.  It's worth reading.  An excerpt:

In the K.R. Puram slum in Bangalore, India, a group of 15 women gather in a small, muggy living room. The electricity comes and goes, turning the fan and the single bare lightbulb on and off. Flies buzz around the room, and children run in and out.

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