There was a time when you could log into the prosper.com forums and see familiar faces and know their portfolio very well without looking it up to see if they know if the person making a statement actually has money invested in Prosper and how much they have at stake. This is not the case over the last few month. The forum moderation has somehow driven out the old timers and brought a new breed of people that just love automated lending and are not afraid to tell you they are new and have 500 to 1k a month to lend blind. There aren't many that will be able to give you a educated answer or even offer experience when a difficult question is asked. Many of the questions that used to pop up no longer get seen by the public.
There were many critics of the Prosper.com policies and many people found accounting issues and other legal issues within prosper and forced them to speak publicly about these issues because it was a live unmoderated forum. The forums today are the "perfect world" there aren't any issues with the prosper model and everyone seems to be making money by the truckload. Well of course the posts that don't get through are those that have been here long past the honeymoon period and have started to build a collection of defaults that we cant even find a debt buyer that is interested in due to it being such a new market.
I have once again stopped all new money into Prosper.com until I see some real improvements in both the lenders and the borrowers. I have begun buying small Cd's weekly until I find other investment vehicles that interest me.
Tuesday, June 10, 2008
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