the microfinance loans in developing countries that led to a well-deserved Nobel Peace Prize for Muhammad Yunus in 2006 often come with interest rates of 200 percent or more, yet the borrowers are made better off by these loans.2 On the other side, some observers think that the hue and cry about predatory lending is based entirely on the failure of left-leaning journalists and others to understand that risky loans require higher interest rates.
