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[112233]

I wonder if prosper will accept the source of information
http://blog.prosper.com/2010/01/19/an-open-letter-to-the-big-money-retract-your-story/

(credit goes to fellow orger for pointing out prosper's remarks on this)

lobby

[Cushie]

lobby x2

[Mtnchick]

3rd for lobby

[ideal-value]

Actually it says that 61% of prosper lenders lost money.

[112233]

as long as we're being precise, here is the exact statement by prosper

39% of lenders have made money on their Prosper investment

[112233]

also, Im assuming the number of lenders (people who actually put money in loans) that made exactly no profit or loss is negligible

[bamalucky]

Over 5k invested & over 365 day loan age puts 359 lenders making a profit.

[NewHorizon]

I don't think noob Lobby onlookers will get what the OP is trying to say without doing a ton of reading in other threads (which they're probably not inclined to do).

[TotoMMB]

After rereading the blog, I picked up on the same thing 112233. 39% made money, the rest seem to fall into a hazy, gray area. I'm sure Prosper would claim a significant amount of those other lenders broke "close to even."

And following my rereading, I submitted the following:

To compare p2p loans to a 401k is ridiculous. Once a loan goes kaput, there is very little chance of recovery, even though Propser will gladly let us pay for the priviledge. When my 401k tanked, I still held the underlying asset. Yes, we just went through the Great Recession, and I've had made up most of my 2008 losses with 2009 gains, in my 401k, mind you. My Prosper portofolio, on the other hand, still shows the same charge-offs and adding new late loans going forward. The BigMoney article was fairly accurate, and instead of a constructive rebuttal, Propser swung the pendulum too far the other way. Comparing rotten apples to rotten oranges doesn't make either any less rotten.

One of two things will happen, 1) I will have my post published or 2) I'll get banned. I wonder where the smart money would go? (And honestly, banishment would be a great help. It will help me save myself from lending any more).

[112233]

I don't think noob Lobby onlookers will get what the OP is trying to say without doing a ton of reading in other threads (which they're probably not inclined to do).

all they have to do is read prosper's blog

[bamalucky]

the rest seem to fall into a hazy, gray area.

Is this hazy gray?

http://www.ericscc.com/stats/lender-return-distribution

[Urbi_et_Orbi]

In 2009, my 401(k) rebounded 30% - and even my new money invested got to experience this nice rebound.  Now, I have another 20-30 years to let it grow.

My Prosper.com account, however, experienced no such rebound and has no such prospects.

[ira01]

In 2009, my 401(k) rebounded 30% - and even my new money invested got to experience this nice rebound.  Now, I have another 20-30 years to let it grow.

My Prosper.com account, however, experienced no such rebound and has no such prospects.

Of course -- which is why Prosper's repeated comparisons to the S&P 500 are so bogus.  If you invested $100K in the S&P 500 right before the crash, you had a big paper loss.  But you still had all of your shares, and most of your loss was erased last year (and eventually you will have a profit if you hold on).  By contrast, charged-off loans will NEVER EVER recover (except for a miniscule and irrelevant fraction of them).  The 61% of Prosper lenders who lost money will NEVER get that money back, no matter how long they hold on to their worthless charged-off loans. 

[NewHorizon]

I don't think noob Lobby onlookers will get what the OP is trying to say without doing a ton of reading in other threads (which they're probably not inclined to do).

all they have to do is read prosper's blog

Shades of creditboards, imho.
ETA: ...referring to the cross-referencing noobs are expected to endure.

[TotoMMB]

the rest seem to fall into a hazy, gray area.

Is this hazy gray?

http://www.ericscc.com/stats/lender-return-distribution

I meant Prosper would see it this way. I don't need convincing. Although this -2% plays right into they're "not bad considering the Great Recession" BS.