Re: Prosper.com
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Years ago a classmate in law school tried to pitch me on this idea. I thought it was retarded. I still think it is stupid.
Say you average 15%-16%. If 1 loan out of 7 defaults you are back to even. These people are borrowing at higher rates because they can't get money from a legitimate source. I think the default rate would me much higher then 1 out of 7.
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No, you only are back to even if 1/7 defaults immediately.
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