Usefully Large Sums

I'm just coming to the end of(Capitalism as we know it Jim) Fools Gold by Gillian Tett
and I have started reading Portfolios of the Poor (PoP) (See link to first chapter for pdf ) my interest being sparked by a certain enlightened economist.

I was struck by the comparison.
In Fools Gold -JP Morgans boys and girls developed a breed of innovative derivatives as exciting new instruments CDS, CDO etc to smooth the choppy seas of the global economy and, of course, turn a handsome mega buck in the process. These financial WMD were abused of course and not, according to the book, by JP.

The authors of PoP who carried out an analysis of the household economies in Banladesh, India and South Africa of some very poor people - $2 a day! They record and demonstate the portfolios of a mix of instuments these families use to survive and prosper (yes, it is shaming) They are boring old instuments, borrowing informally from family and friends at zero interest, moneylenders (convenient and flexibleup to a point Lord Copper), microfinance institutions and savings clubs that charge ( hard to credit!).

As well as 'fortress balance sheet' I think The Rock, Bare Stearns, Lehman Brass could have learnt a thing or two from Hamid and Khadeja. I know I could.