In Credit Crunch, Lending To Each Other

More Americans Turning To New Source Of Money: Person-To-Person Lending

(CBS)  At a time when credit is hard to come by, more Americans are turning to a new source for money: each other. It's called person-to-person lending, and it's expected to rise 800 percent in the next couple of years.

Justin Brown didn't think he was being extravagant when he borrowed $4,700 to buy his motorcycle. But he already owed $5,000 on his credit card and the interest was crushing, CBS News correspondent John Blackstone reports.

He was paying 31 percent on his credit card. And now he's paying …

"Ten percent," Brown said.

That's not bad in these times of tighter credit. He found a place filled with lenders ready to give money at a good rate.

"I'm not giving them money, I'm loaning them money," said lender Alex Clemens.

But the lenders aren't bankers; they're just folks like Clemens.

"This is a simple way for Americans to figure out, 'hey, I need a couple bucks and I'd rather pay a human being the interest'," Clemens said.

Those with some money like Clemens, and those who need some like Brown, are now able to get together on Web sites like LendingClub.com and Prosper.com.

Since CBS News first reported on Prosper.com a year ago the credit crisis has made person-to-person lending take off, nearly tripling Prosper's customers to 630,000.

"The people that really used to have options everywhere," said Chris Larsen, Prosper.com's CEO. "They could get a home-equity loan, they could get zero percent on their credit cards. And that's really changed."

Those options are off the table. So we're seeing those people turn to other Americans.

Other Americans who see person-to-person lending as a haven away from the chaos created by the experts on Wall Street.

"It's certainly more interesting than playing the stock market," said Clemens. "And slightly less heart-wrenching as the Dow goes up and the Dow goes down and the NASDAQ goes sideways."

And while big financial institutions have been losing billions, even going under, Clemens says so far his person to person loans have been paying off nicely.

"This is a democratization of the finance market," Clemens said.

What appeals to lenders and borrowers both is cutting out the big banks. You're essentially cutting out the middle man.

"Yeah, exactly," Brown said. "And I think that's why you can get better rates. You know, there's less red tape, less bureaucracy."

Beating the financial giants at their own game. Now that's…priceless.

[forthepeopl1]

Standard & Poor''s Ratings Services revises its outlook on Goldman Sachs Group Inc. and Lehman Brothers Holdings Inc. to negative from stable, BETTER START TAKEING YOUR MONEY AND RUNNING TO THE HILLS..

[forthepeopl1]

ITS TIME FOR AMERICANS TO TAKE UP ARMS AGAIN, AND TAKE OUR COUNTRY BACK.

ITS OUR RIGHT UNDER THE CONSTITUTION..IT STATES THAT IF OUR GOVERNEMNT IS NOT FOLLOWING WHAT THE MAJORITY OF AMERICANS WANT, THAN ITS UP TO AMERICANS TO CHANGE THAT, AND START OVER WITH A NEW GOVERNEMNT FOR THE PEOLPE BY THE PEOLPE..

SO ARE WE READY YET TO TAKE OUR COUNTRY BACK..THEY CANT KILL US ALL IF WE THE PEOPLE OF WHAT 27500000 MILLION STAND UP AND MARCH DOWN TO WASHINTON THE OTHER 2500000 ARE THE ONES THAT ARE MAKEING BILLIONS ON US POOR..THATS THE ONE PERCENT THAT IS RUNNING AMERICANS AND AMERICA BROKE..

READY YET..LETS GO

I WATCH A MOVIE LAST NIGHT THAT SAYS IT ALL

HANG EM HIGH!!!!!!!!!!!!!!!!!!!!!

[mcv57]

Posted by forthepeopl1

Any uprising would be short-lived in America. There are many reasons why the White House Regime can commit to murder and prostitution:

- To commit to coup, the rogue leader must have tons of resources (money, people and alliance).

- There is so much corruption in the government, it would take half the states to form a confederate union to challenge its perversion.

etc, etc.

All that would happen now is what you see in China, the government murdering its citizens. Believe, the law enforcement syndicate loves to murder.

[wardoglrs]

Central Bank Exposed


http://www.heyokamagazine.c
om/HEYOKA.12.%20MoneyMasters.htm

[gkc99]

There''s one thing the creditor class in America, so beloved of the Bushits, has failed to realize is that when people have had enough of lenders--they won''t borrow money from them! And if the lenders don''t lend--they don''t make money!

That would be the sweetest revenge on these usurers. Usury is condemned by God in the bible--but funny you never hear the Republican Right Religious Ranters tell us about how America is bound for hell because of Usury.

Fact is, finding financing that bypasses the Bearn Stearns and the Goldman Saches of this world would be ruination for the global capitalist elite.

So look for bank credit to become real available again in the not too distant future. It''s like the oil companies--first hint that alternative energy might be possible, and gas prices drop like a rock.

Same way with interest rates. Until you''re back on the hook

[ov442]

Hey, if there is one good thing to come out of the Bush legacy, and i mean just one, it''ll have gotten so bad in running this country that the american populace will rise up over the protests of the psychotic right wing nutball sheep that follow the GOP to hades, that there will finally be huge sweeping changes in this country regarding Globalization, immigration, crime and punishment, financial inequality and unfair tactics.
If.