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[Fred93]

this is why you should have second thoughts about Prosper:
http://www.nytimes.com/aponline/business/AP-Credit-Card-Crunch.html?

Woo hoo... Quote from the article...

Among the trusts examined, Bank of America Corp. had the highest delinquency volume, with overdue accounts valued at $5 billion. Bank of America defaults in October were almost 200 percent higher than in October 2006.

"Up 200%" means defaults in Oct'07 were THREE TIMES BIGGER than defaults in oct'06.  Egad.

[HollowOak]

this is why you should have second thoughts about Prosper:
http://www.nytimes.com/aponline/business/AP-Credit-Card-Crunch.html?

Woo hoo... Quote from the article...

Among the trusts examined, Bank of America Corp. had the highest delinquency volume, with overdue accounts valued at $5 billion. Bank of America defaults in October were almost 200 percent higher than in October 2006.

"Up 200%" means defaults in Oct'07 were THREE TIMES BIGGER than defaults in oct'06.  Egad.

You are assuming that the reporter is capable of manipulating numbers. Not necessarily true.

[Capital_Finance_Group]

Any 3rd Thoughts out there?

[mothandrust]

http://www.cnn.com/2008/LIVING/worklife/10/08/cb.workers.paycheck/

Almost half of workers live paycheck to paycheck just to make ends meet, a new CareerBuilder.com survey finds.

So if someone is living paycheck to paycheck, what happens when there is no paycheck?

We haven't been in a recession since November 2002, so we've had almost 6 straight years of economic growth--plenty of time to pay off any debts, invest, and set aside savings for when the economy might hit a downturn.

Recession risk was one of the risks that we all took when we started lending--the downturn is now upon us and unemployment is going up.

My third thought is that while I might lend on Prosper knowing that we might possibly have a recession during the next 3 years--but I'm not going to want to lend once the recession has started.

[Mark12547]

So if someone is living paycheck to paycheck, what happens when there is no paycheck?

I think Prosper loan payments would be one of the first bills they stop paying. As we have read from borrowers who have encountered problems, in many cases there is no down side to not paying a Prosper loan, other than a ding on their credit reports.

It seems that too few people save money when times are good, so when times are hard, the hard times are that much more harsh.

[cowdog]

Any 3rd Thoughts out there?

Prosper sucks.