Credit Default Swaps vs. Microloans

Alex Raksin posted a good open letter to the World Economic Forum meeting today in Davos called “By the people, for the people” in response to the WEF’s chairman and founder, Klaus Schwab’s opening question, “Where should leaders look to find a new transformative vision for international finance?”

Raksin contrasts the efficacy of microfinance with the disastrous get-rich-quick financial instruments like credit default swaps.

In describing microfinance, he notes “that capitalism, especially when driven by creativity and social conscience, can generate significant returns in every sense of the word — financial, ecological, ideological and cultural.”

This is good input for many of the world’s most powerful leaders gathered in Switzerland.

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