P2P Lending Article in BusinessWeek

January 9th, 2008 | Prosper.com

I can’t get enough p2p lending articles, but this one is fairly standard… I am not sure what I expect or how the mainstream media could cover this any differently… The average joe needs to find out about and understand p2p lending if the paradigm is going to change. I did like the financial voyeurism angle of the article.

The day the last loan officer rejected his application, Lindgren heard about Prosper. The auction-style site connects borrowers with lenders and promises both sides more favorable interest rates than banks by cutting overhead costs. Lindgren applied for the maximum $25,000 loan the next day, offering to pay 17.5% interest. Lenders found the offer so attractive that they bid the rate down to 10.2%, and Direct Textbook had the cash in its account within two weeks. The rate is comparable to what Lindgren pays on his bank credit lines.

In fact ever sine I read LoanChimp’s financial voyerism take, I have begun to understand my p2p addiction in a different light.

Over the past few years, popularity of personal finance bloggers has exploded. One of the reasons is that these individuals expose the inner workings of their financial life to the public. How much they make, how much they have invested, how much debt they have, how much they spent on beer last month, etc… This gives the average American the opportunity to pry into the financial life of a complete stranger and compare notes – something we’ve rarely had the chance to do before.

LoanChimp Continues

But this peer group is only a small fraction of the financial spectrum found in America. What about the not-so-frugal types? Or those on relatively small or large incomes? Or the guy you see on the expressway with the oh-so-expensive car you’re pretty sure he can’t afford and you’re almost certain he didn’t steal?

I could probably quote LC whole article, it is that good… Instead, I think you should read it for yourself…

Financial Voyeurism

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