Friday, October 10, 2008

Recession's likely impact on p2p lending

"In the financial news you can find a story almost every day about the weakness in real estate markets, rising foreclosure rates, and increases in the number of bankruptcy filings. Some economists worry about the effects spreading across the broader economy and triggering a recession. The bearish outlook suggests that lenders will tighten up their borrowing criteria, consumer spending will decrease, and unemployment will start to increase." - Matt here on Prosper Lending Review, June 28, 2007

The stock market just had its worst week ever based largely on fears we are entering a recession. Last year Matt wrote an article about the likely impact of a recession on P2P lending. His points are all still valid. It's worth another look now.

1 comment:

Bamalucky said...

A recession won't be loanio.com problem. Lack of security & problems will.Someone already hacked my account & he's double billing the transfers in.I blogged about it here
http://www.prospers.org/blogs/bamalucky