Also, I can't believe she is comparing prosper loans to CDs or your bank deposits.
Why not? That's the only reason I got into prosper, CD rates were dipping pretty low. They're even lower now.
Um, because CDs and bank deposits are 100% safe thanks to the FDIC guarantee, while Prosper loans are . . . not? Also, bank deposits are 100% liquid, and CDs nearly so (you pay a very small penalty for early withdrawal), while Prosper loans are not (sure, Folio adds liquidity, but depending on the details of a given loan, you may have to offer it at a large discount to unload it). The proper comparison for Prosper loans would be junk bonds of a company losing money had over fist.
