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[Mark12547]

"Prosper's People-to-People Lending" showed up on Google alerts, pointing to this article: http://commodities.ad-hoc-news.de/Commodities/en/15012748/Prosper's+People+to+People+Lending+Market+Survey+Dec+2007

It's amazing how Chris Larson can come up with different classification of loans ("Prime Select Loans", "Near Prime Select Loans", "Sub Prime Select Loans"), ways to data mine without appearing to data mine, as if we knew what those terms were and could bid accordingly.

At Prosper, we also saw a dramatic switch in the prime versus subprime market with subprime declining from over 25% in 2006 to barely 5% currently. This change reflects both a changing external market as well as a maturing of the Prosper marketplace.

Maturing? I think it is part the more widespread knowledge of how bad HR defaults are, and part the new bidding advisory. I knew Prosper had to do something to help reduce the defaults or otherwise their days would be numbered, so I think the bidding advisory is a definite step in the right direction. Too bad Prosper tends to take two steps backwards for every forward step. 

[Urbi_et_Orbi]

You've gotta give it to them - nice spin-work with the smoke and mirrors messaging.