IMHO, this is a poorly written blog. It reads like it was written by someone in High School and they wouldn't have gotten an A if it had been graded.
His blog barely lives up to the title. This despite his efforts to recycle the title in every paragraph.
He doesn't have a full grasp of the facts, as he swears Lending Club was always kosher with the SEC, when clearly it wasn't for 6 months while it got its registration approved.
Then he implies that SEC registration is a guarantee of investor success.
As one of the once optimistic borrowers (typo, meant lenders, but it's hard to remember that when I'm losing money!) who will lose 25% of my money, I don't appreciate being told if I had only made "smart loans" I wouldn't have lost anything. Under the old grades, I invested in what I thought were AA, A and B loans (with one wildcard E). All I have left are one AA and the E. Under the new grading system, Prosper now says these were C grade or lower. I didn't just lend money at "great rates," I made gifts to people I don't even know. *sheesh*
Then the dope writes that if you don't pay, don't worry, no one will come after you.
And I thought "At the end of the day" had been retired already.