Finance under a Microscope

Global economic condition is the sum of all the little economic details involving individuals, households, and smaller firms. Indeed, these minute consumers make up the market of wealthier families and larger firms. Economic failure at the bottom level is not exclusive; it will eventually affect worldwide economic activity. This phenomenon was evidenced by the recent credit crunch, when microfinance borrowers like credit card holders began to default on their loans causing financial institutions to incur sizeable bad debt losses. Like the domino-effect - a small adverse event results in a disaster of massive proportions. Microfinance, or the provision of financial services to low-income individual and self-employed consumers, has its challenges and criticisms. Nevertheless, help should be afforded at the lowest level before results on a larger scale can be expected. There is a difference between giving someone fish and teaching him how to fish. Like the wealthy, poor people need access to high quality financial services including credit, savings, insurance, and fund transfers. People should be given financial opportunities, specifically to those who display effort to better themselves like small-scale entrepreneurs and working individuals.