Every Saturday I bring you the latest news from the world of peer to peer lending. These are the best of the news articles and blog posts from around the web that I shared on Twitter this past week.
We have an interesting collection of articles for you to read this weekend. Lending Club is featured in most of the them, with many bloggers discussing their investments and various features of Lending Club. The Harvard Business Review article by Nilofer Merchant doesn’t discuss p2p lending directly but is about innovation and how the social era is confounding many large companies. As an aside it was an untimely reference she made to ProFounder as they shut down their operations yesterday – they claim to be victims of the current regulatory environment – but that may well change later this year. Enjoy your weekend.
The Penny Hoarder – The 10 Weirdest Investments on Lending Club
ProFounder blog – ProFounder is Shutting Down
Smart on Money – Where Do You Get Better Returns For Short Term Savings? A Bank CD Or A Lending Club Account?
Nickel Steamroller – Seasoned Loans for Lending Club Investors
iSellerFinance – Peer-to-Peer Lending: The State Of The State.
Lending Club Experience – How I Use Lending Club Portfolios
Lending Club Experience – Seven Months In And Things Are Slowing Down
Lend Facts – Lending Club Fees
Harvard Business Review Blog Network – Rules For the Social Era
Narrow Bridge Finance – How to Build a Social Lending Snowball
The LendFacts article on fees was quite interesting. I was aware of your comments on the origination fees but the highlighting of other fees not quite mentioned as much before was revealing.
I thought so too. In reviewing my account, I’ve found several instances where the collection fees were greater than the amount recovered! Wish I could opt out of those…
Another set of articles comparing LC to CD and “short term savings”.
When will it stop? Lol
@Danny, Fees are always good to pay attention to – they will always eat into investor returns somewhat.
@Mike, I guess if they knew they were only going to recover a small amount they probably wouldn’t bother but when you are collecting money you always hope to receive a good chunk of what is owing.
@Charlie, I thought of you when I included that article. Like it or not many people will continue to make this comparison.
Charlie…………..I’ve hammered away at that issue for years now & it’s mostly like talking to a wall. The key is education.
Therefore I propose that 20% of the income generated through p2p signups by financial blogs be set aside in a fund to provide proper education for new & prospective investors. Certain blogs like this one might be issued exemptions by a yet to be anointed “P2p Czar” that has no affiliations with any blogs. This person will review each blog for compliance, educational value as well as general intelligence, or lack thereof. This appointee will also tirelessly educate the public. Naturally this individuals pay will come out of the above mentioned 20%.
If appointed I will graciously & humbly accept this post. 🙂 Did I mention that I’ve instructed at a community college for 3 years? That does count as teaching experience, you know. 🙂
Thanks Peter!
From: The Czar Creation Panel (CCP) a.k.a. Chinese Communist Party
To: Dan B
We are pleased that u have an interest in are newly created position (p2p Czar). However, looking at your resume, we can only conclude that u are not qualified four the position. Are hiring standards are rigor mortis as we pride ourselves in hiring only the most talented Global citizens.
Please take a moment to review the qualifications (importance in getting hired in parentheses):
1) Tax evasion…er, “tax oversight” (10%)
4) Ivy League Education (10%)
2) Lifetime of isolation within the ivory tower or the governing elite (10%)
3) No practical, real-world knowledge or experience (69.42%)
In order too pass this section and move on two the second of our 42 round, AFSCME certified hiring process, applicants must score 110% or better in each of the above categories. A failing grade of F in any of the categories does not necessarily disqualify you from a passing score.
We thank you for you bond interest, and we wish you the best of luck in your application for federal assistance.
Sincerely,
CCP
Roy S………I couldn’t disagree more. Remember that Bill Bennett, a chain smoker was the first “Drug Czar” here in the US. Hire an expert with plenty of practical experience.
Besides. it’s interesting that you mention China, because I’m fairly certain that I’m the only candidate here that has been to China, speaks Cantonese, & was also born at a location that is now a Special Administrative Region (SAR) of China. Anyone who thinks that the Chinese Communist Party would select any of you over me is quite delusional! 🙂
@Dan/@Roy, All I can say if that you are relying on 20% of the income generated from p2p lending blogs then we have difficulty finding a candidate willing to take a large pay cut for this position.
Dan, like the U.S. presidency, the P2P Czar will have tremendous power over public opinion, so I think it is only fair that we run free and open elections for this position. I have an email out to Jimmy Carter now to enlist his observation skills. I know I can rely on you to run a fair and balanced campaign.
You’re kidding right? You’re seriously going to use the term observation skills & Jimmy Carter in the same sentence ? This is a man who once filed an official report of a UFO sighting! And that was when he was still a young man. He’s like 88 now. For someone who served as President, that’s like 98 in real age. For God’s sake let the man get some rest.
If you insist on having an observer, I’d recommend Oliver North. Ollie’s got a lot of observational experience in countries that are renowned for their “free & open” elections. 🙂
Thanks for including me in your roundup.