Fortunately, the very *first* post was a mention to the actual 40% default rate. (It's the only post that nails Prosper proper.) Unfortunately, the posts do not automatically display below the article. You have to click on the comments box to see them. Since most people won't, the article can pass scrutiny with the average reader.
I think someone noted the $25 bid--this was not a typo, this is the new minimum bid amount. If it had been in place 18 months ago, I guess I could have 6-11 floundering loans instead of 5. Prosper's assurances that 20 $25 bids will make you disversified are hollow. We're not talking one bad apple, but 40% across all credit strata.
As for where she got the 5% rate. I'll hazard she took a first year number from Lending Club. Or maybe they want me to compare my -5% (or more) with my IRA that cratered. My munis have fully recovered from the meltdown.
* The calculation of Estimated Return requires significant assumptions about the repayment of loans and lenders should make their own judgments with respect to the accuracy of these assumptions. Actual performance may differ from estimated performance.