Wednesday, August 4, 2010

Palella's 10 Laws, Corollaries & Predictions for the field of MicroFinance published on Twitter


Palella's 10 Laws, Corollaries and Predictions for the field of MicroFinance were published 03 August 2010 on Twitter. The 10 visionary, sardonic, tongue-in-cheek tweets are:

(1) MFIs (micro finance "institutions") will proliferate worldwide until Micro Investment Vehicle (MIV) returns decline asymptotically to zero

(2) The doubling time of the number of Micro Finance Institutions (MFIs) worldwide will decline until MFI investment returns fall below Zero

(3) Micro Finance Institutions (MFIs) are particularly vulnerable to global Black Swan events that could & will destroy their business models

(4) Microfinance Investment Vehicles (MIVs) that do not hedge currency risk will be devastated by a collapse of the U.S. dollar & Euro in 2011+

(5) Developing world economies and MFIs (Micro Finance Institutions) that serve them will be bankrupted by US$100++ per barrel oil in 2011+

(6) The business models of Micro Finance Institutions (MFIs) must be adapted to take into account imminent debasement of the U.S.$ and the Euro

(7) Credit Default Swaps on MIVs (Microfinance Investment Vehicles) and MIV-backed Securities will spawn a new micro Bear Stearns-like calamity

(8) Microfinance loans expand to deplete the capital available, in spite of country & political risks and the creditworthiness of borrowers

(9) Microfinance "professionals" worldwide will inflate bubbles in their field that pop, sadly, leading to a "Lost Micro Decade" of poor returns

(10) And #10 ! - Sustainable Micro PROFIT sharing & Micro Savings, as well as Micro EQUITY investments, are the Future of the microfinance field



Remember: "History does not repeat itself, but it does rhyme."

Respectfully submitted for debate by:

David A. Palella

"The Robin Hood of Microfinance"

The "Micro" Revolutions Institute(SM) Established by Carbon Manna

Carbon Manna announces The Micro Sustainability Prizes(SM)