The main offices of both Lending Club and Uber may be mere blocks away from each other in San Francisco, but the modus operandi of the two tech companies are worlds apart. Uber has expanded hyper-aggressively, consciously making the decision to sacrifice rule-following for the sake of growth. Meanwhile Lending Club has, for the most part, eschewed the typical Silicon Valley mantra of ‘move fast and break things’ for a more conciliatory approach.
Today, we sent a ‘Monthly Report’ to our clients. This is the kind of info they should have received: Expected Return: 9.04%, Expected Value in 12 months: \$136.412. Instead we sent something like that: Expected Return: 0.00%, Expected Value in 12 months: \$-14,450,428,383,661.
Lending Club recently announced the launch of a new type of credit: auto loans. This is great news,… except for the individual Peer Lending investor, who remains without access to this investment opportunity. Again. Perhaps this change was inevitable, as technology originally designed to serve the individual investor has evolved to deal with its own success. Peer-to-Peer as an impetus…
Oh, the mighty turkey! If Benjamin Franklin had his way, this proud bird would have been the national mascot for the United States.
An increase of stock market prices is only sustainable when it matches economic growth. Otherwise it’s pure speculation, and history has shown that ‘corrections’ inevitably happen.
The idea of lending money to people you don’t know, without any kind of guarantee, may seem stupid at first. But ‘Peer-to-Peer lending’ (as it was originally called) does work for investors.
Bloomberg recently posted a critical article about Lending Club. There are two main points in the article: first, that Lending Club is clandestinely issuing “supposedly” undesirable loans to repeat borrowers, and second, that Lending Club as a company is failing.
You have a superpower. You’ve probably used it without even knowing what was really happening, and, for better or worse, it has changed your life.
In fact, nearly the entire human race has this ability. It has been honed over thousands of years, and made more efficient with technological innovations and quantified with mathematical formulas.
It was called Peer-to-Peer Lending. The idea was to circumvent banks, the inefficient too-big-to-fail organizations that grew fat after centuries of undeserved profits, and create a market without any intermediates, where borrowers would be matched directly with lenders.