{"id":479,"date":"2007-08-06T18:26:25","date_gmt":"2007-08-06T12:56:25","guid":{"rendered":"http:\/\/alpha.ravikiran.com\/blog\/2007\/08\/06\/are-you-reassured-now\/"},"modified":"2007-08-07T10:24:26","modified_gmt":"2007-08-07T04:54:26","slug":"are-you-reassured-now","status":"publish","type":"post","link":"https:\/\/www.ravikiran.com\/blog\/classic\/200708\/are-you-reassured-now\/","title":{"rendered":"Are you reassured now?"},"content":{"rendered":"<blockquote><p>\u201cSub-prime rates in India are given to the highest rated industrial group&#8230; You and I don\u2019t get sub-prime rates. Somebody like NTPC may get a sub-prime rate or Tatas&#8230; I am only speculating.\n<\/p><\/blockquote>\n<p>That&#8217;s <a href=\"http:\/\/www.livemint.com\/2007\/08\/06164502\/India-affected-by-fall-in-Asia.html\">P Chidambaram<\/a>, our smart Finance Minister reassuring his countrymen that the sub-prime wreckage won&#8217;t hurt India much. <\/p>\n<p>Except of course, that sub-prime rates are <em>not <\/em> below the Prime Lending rates, but <em>above<\/em>.<\/p>\n<blockquote><p>Subprime lending, also called &#8220;B-Paper&#8221;, &#8220;near-prime&#8221; or &#8220;second chance&#8221; lending, is a general term that refers to the practice of making loans to borrowers who do not qualify for market interest rates because of problems with their credit history. Subprime loans or mortgages are risky for both creditors and debtors because of the combination of high interest rates, bad credit history, and murky financial situations often associated with subprime applicants. A subprime loan is one that is offered at a rate higher than A-paper loans due to the increased risk. (<a href=\"http:\/\/en.wikipedia.org\/wiki\/Subprime\">source<\/a>)\n<\/p><\/blockquote>\n<p>To be fair to Chids, I too was fooled by the &#8220;sub&#8221; in sub-prime till my brother explained to me that what was &#8220;sub&#8221; about it was not the rate, but the quality of the borrowers. But I am a mere blogger, not the country&#8217;s finance minister. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u201cSub-prime rates in India are given to the highest rated industrial group&#8230; You and I don\u2019t get sub-prime rates. Somebody like NTPC may get a sub-prime rate or Tatas&#8230; I am only speculating. That&#8217;s P Chidambaram, our smart Finance Minister reassuring his countrymen that the sub-prime wreckage won&#8217;t hurt India much. Except of course, that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/posts\/479"}],"collection":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/comments?post=479"}],"version-history":[{"count":0,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/posts\/479\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/media?parent=479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/categories?post=479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ravikiran.com\/blog\/wp-json\/wp\/v2\/tags?post=479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}