Wednesday, November 26, 2008

The "EBAY For Lending" Is Getting Shut Down By The SEC

How stupid can the banking industry possibly be? The banking morons caused this financial crisis and now they are lobbying the government to shut down innovation. The fact that the SEC is shutting down one of the biggest innovations in the banking industry in the last 100 years. Peer to peer lending (an EBAY for loans) is just further evidence of how desperate the banking industry is at trying to retain control of money distribution, lending rates and liquidity. If you can't get a loan from your neighborhood "moron" banker why not bypass the traditional system and borrow from someone on the internet? Seems reasonable if you have a good reputation and credit history. Its a disgrace and I think this will only cause more sites to start because it actually works. Look up "Micro Lending" and see what it has done to entreprenuers in Africa. Yes there is risk but it can be diversified and reputation is everything. Reputation is EVERYTHING!

These two articles are a must read!

http://www.techcrunch.com/2008/10/16/prosper-and-other-p2p-lenders-get-squeezed-by-the-credit-crunch

http://www.techcrunch.com/2008/11/26/sec-outlines-its-reasoning-for-shutting-down-p2p-lender-prosper/

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