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[nonattender]

The first May loans are already showing signs of trouble.

This is like saying:  "Many individual NASDAQ stocks have fallen from their May 30th closing values."
It's a marketplace of individual loans.  Selection (and, therefore, diversification) is up to the buyer.
No one cries for the trader, or about the exchange, when someone dumps money into a bad stock.

-t

[bamalucky]

I think we have a new man crush developing. 

[Tokyo Joe]

The first May loans are already showing signs of trouble.

This is like saying:  "Many individual NASDAQ stocks have fallen from their May 30th closing values."
It's a marketplace of individual loans.  Selection (and, therefore, diversification) is up to the buyer.
No one cries for the trader, or about the exchange, when someone dumps money into a bad stock.

-t

No it's not.  Stocks go up and down in value, loans don't. Stocks seldom become worth $0 in a month, and when they do, it is newsworthy.

I agree with the premise that any batch of loans are going to have lates appear; but that is not due to marketplace factors.  The only marketplace factor involved is the APR and whether or not the loan funds in the first place.

Since Urbi provided no numbers, I can't tell from the post whether or not an unusual amount of loans are going bad or not.  But it's not like buying a stock.

[Xenon481]

As jmathree linked, only half of the May loans can even possibly show up as Late, and yet we ALREADY have Late loans in every single credit grade (even AA).  ~0.77 of ALL May loans (not just the half that can possibly show late) have missed their first payment.

Nonattender's comment is absolutely ludicrous.

No one cries for the trader, or about the exchange, when someone dumps money into a bad stock.

Are you saying that nobody should be crying because all Prosper loans are "bad" or are you being purposely misleading and biased again?

[ira01]

As jmathree linked, only half of the May loans can even possibly show up as Late, and yet we ALREADY have Late loans in every single credit grade (even AA).  ~0.77 of ALL May loans (not just the half that can possibly show late) have missed their first payment.

Nonattender's comment is absolutely ludicrous.

No one cries for the trader, or about the exchange, when someone dumps money into a bad stock.

Are you saying that nobody should be crying because all Prosper loans are "bad" or are you being purposely misleading and biased again?

+1.  Nonattender's post reaches a new low in Prosper Kool-Aid drinking.  Except for the minute number of cases in which a borrower dies, becomes gravely ill, or some other earth-shattering event occurs in the month between loan origination and the first payment becoming due, almost every loan that fails to make the first payment is a case of fraud (whether ID-theft or garden variety "gimme my loan proceeds even though I have no intention of ever making a payment" type fraud).  If Prosper were a decently-run company, it would carefully investigate every such loan, and sue the borrowers on the majority of them, thereby creating a reputation for Prosper as a place that fraudsters should steer clear of.  But, of course, Prosper has no incentive to investigate such loans carefully, since any loan that turns out to be ID-theft, Prosper would have to repurchase under its now all but dead "guarantee" (It is now July 3, 2008 and Prosper has STILL only repurchased ONE loan originated after 8/1/07  ). 

[Xyrus]

poof

[bamalucky]

No personal attacks in the lobby..It's what some people strive for to get the whole thread moved from public view.

[Xyrus]

Ok. Then can I say that nonattender's comment comparing the Propser to the stock market demonstrates a lack of understanding bordering on the imbecilic?

~X~

[bamalucky]

You can say anything except on the 2 topics at the top of the forum.The lobby & the other are google crawled.The rest are not.

Feel free to add your thoughts on my thread here.

http://www.prospers.org/forum/empty-t8020.0.html