, Columnist
India’s Subprime Mortgage Mania Can Quickly Turn to Panic
Investors have seen similar stories play out before.
Hundreds of millions of Indians crave a roof over their head. But they need a secure job first.
Photographer: Dhiraj Singh/Bloomberg
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Affordable housing in India is a corner of finance that’s expanding almost 40 percent a year, and even more for some hyperactive lenders. The borrowers are subprime, their collateral is of dubious value, financiers’ cost of capital is rising, and yet the government is whipping up a home-buying frenzy.
Investors beware. You’ve seen similar stories play out before; this one, too, isn’t likely to end well.