Thursday, October 9, 2008

CNN recommends P2P lending

I was just watching the evening news on CNN. Anderson Cooper was discussing the market with a few guests. The stock market is down nearly 40% on the year. He read a question from a viewer who asked if there was anything for someone to make money in a market like this.

The CNN "expert" suggested two things. First, if you have good credit and some cash it may be a good time to look into buying foreclosures. Second, look at p2p lending. People have few choices for loans right now and are looking to their peers. If you are in a position you can loan to others and earn a good return, according to the analysts.

This echos sentiment from a CNN article last week. With the market down, investors are looking to p2p lending for a better return. With traditional sources of credit disappearing, people are turning to p2p lending.

Back in March, Lending Club CEO Renaud Laplanche told The Kansas City Star the peer-to-peer lending industry is being aided by something of a perfect storm. "On the borrower side, banks are tightening the money supply," he said. "On the lender side, the stock market isn't performing well." If it was true in March, it is even more true now.

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