Comments on: 3 Years of Peer-to-Peer Lending

By: stock market

stock market — Tue, 25 Aug 2009 13:52:16 +0000

In my opinion, it is not a good idea to invest on P2P. As you have said the risk is to high. I would rather have my money placed on a high yield savings bank account or invested in mutual or index funds than see it all swirling down the drain.
However, I have to say that you did a really good job. Yes 52% loss is not pretty but other asset classes loss even more.
This is a great post by the way and I have fun reading it.

By: -> Introduction To Peer-To-Peer Lending: Review And Signing Up To Use Lending Club | Bible Money Matters

Thu, 06 Aug 2009 12:02:16 +0000

[...] 3 Years of Peer-2-Peer Lending [...]

By: Financial Ramblings | Bizness Geek

Financial Ramblings | Bizness Geek — Sun, 07 Jun 2009 03:26:47 +0000

[...] ETF’s -The recovery of the real estate prices, is it already time? -Four Pillars discusses Peer to Peer lending, a look back since its debut -MDJ is still on his way towards being a millionaire!! -Zach discusses [...]

By: NewHorizon

NewHorizon — Wed, 03 Jun 2009 20:49:30 +0000

@Thicken My Wallet: Meeting the borrower face-to-face has been tried – and it failed. Once they go late, they stop answering Emails, telephones, the front door …

Prosper has proven that the rapport ends when the money does. Kinda kills the heart of this “people-to-people” thing, doesn’t it?

By: ExProsperLender

ExProsperLender — Wed, 03 Jun 2009 12:35:56 +0000

Check out Fred93’s blog. He’s been charting prosper’s late loans since inception.
http://fred93blog.blogspot.com/

By: Mr. Cheap

Mr. Cheap — Mon, 01 Jun 2009 19:53:15 +0000

It would actually be at 10%; you only had $25 bid at an 8% return.

Mike: Yes, you’re right.

By: Mike

Mike — Mon, 01 Jun 2009 12:17:53 +0000

Mr. Cheap:
“Say I ask for a loan of $100 and Mike offers $60 at 12%, Squawkfox offers me $25 at 8% and the Canadian Capitalist offers me $75 at 10%. The loan will be arranged at 8% between Squawkfox & CC (Mike will have been underbid) and myself.”

It would actually be at 10%; you only had $25 bid at an 8% return.

By: Mike

Mike — Mon, 01 Jun 2009 11:02:20 +0000

Mr. Cheap:
Check out ericscc.com, if you haven’t already. I wouldn’t trust his analysis, but that site is a pretty good source for raw data. You would probably want to look for lenders with default rates under 10% – they are doing better than average – and figure out how to replicate their results. It’s your money, you figure out how to make it work for you.

X:
“There is an interest for Prosper and LendingClub to handle as much volume as possible to pocket more profit. Thus there is a conflict of interest right there.”
Prosper takes a commission on every payment; it’s in their interest to have a high volume of current loans. The closest they come to a conflict of interest is in that they originate the loan but have negative incentive to make any collection efforts. However, collections are assigned to third-party agencies that do have a vested interest.

By: Intelligent Speculator | Financial Ramblings

Intelligent Speculator | Financial Ramblings — Sun, 31 May 2009 14:31:19 +0000

By: Baking Soda Makes a Good Exfoliant

Baking Soda Makes a Good Exfoliant — Sun, 31 May 2009 13:51:49 +0000

[...] Cheap from Four Pillars wrote an in-depth retrospective of 3 years of peer-to-peer lending. Having followed the news and blogs and talked to friends who were involved in it, I found the big [...]