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I thought this would be a good ? for you all.

pozessed
Posts: 1,034
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3/4/2013 8:01:39 AM
Posted: 3 years ago
Could a no credit check, online peer to peer lending network be a worthwhile investment?
I imagine that each lender and borrower would have to be on a ranking system to inform the public of their community standing.
I also imagine that the funds would be digitally transferred only.

Could a lending system like this boost the markets?

The only negative I see in something like this would be the people who borrow and run.
I don't think this would be a big problem though because nobody is going to come out of pocket on a high risk loan unless they give out something they're prepared to lose anyway.

Am I missing any other down sides?
muzebreak
Posts: 2,781
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3/4/2013 8:04:10 AM
Posted: 3 years ago
look into bitcoin, and some of the lending companies surrounding this currency.
"Every kid starts out as a natural-born scientist, and then we beat it out of them. A few trickle through the system with their wonder and enthusiasm for science intact." - Carl Sagan

This is the response of the defenders of Sparta to the Commander of the Roman Army: "If you are a god, you will not hurt those who have never injured you. If you are a man, advance - you will find men equal to yourself. And women.
pozessed
Posts: 1,034
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3/4/2013 8:14:40 AM
Posted: 3 years ago
At 3/4/2013 8:04:10 AM, muzebreak wrote:
look into bitcoin, and some of the lending companies surrounding this currency.

Not exactly what I'm thinking. If a system like that caught on and started flourishing over night, if it caught on fast enough wouldn't it hurt our economy more due to banks needing to restructure?
muzebreak
Posts: 2,781
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3/4/2013 8:21:22 AM
Posted: 3 years ago
At 3/4/2013 8:14:40 AM, pozessed wrote:
At 3/4/2013 8:04:10 AM, muzebreak wrote:
look into bitcoin, and some of the lending companies surrounding this currency.

Not exactly what I'm thinking. If a system like that caught on and started flourishing over night, if it caught on fast enough wouldn't it hurt our economy more due to banks needing to restructure?

I was refering more to the issues the lenders have. But also that if one is to do an online lending system, then bitcoin might be the best option. Not to you creating a new currency system.
"Every kid starts out as a natural-born scientist, and then we beat it out of them. A few trickle through the system with their wonder and enthusiasm for science intact." - Carl Sagan

This is the response of the defenders of Sparta to the Commander of the Roman Army: "If you are a god, you will not hurt those who have never injured you. If you are a man, advance - you will find men equal to yourself. And women.
pozessed
Posts: 1,034
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3/4/2013 8:52:45 AM
Posted: 3 years ago
At 3/4/2013 8:21:22 AM, muzebreak wrote:
At 3/4/2013 8:14:40 AM, pozessed wrote:
At 3/4/2013 8:04:10 AM, muzebreak wrote:
look into bitcoin, and some of the lending companies surrounding this currency.

Not exactly what I'm thinking. If a system like that caught on and started flourishing over night, if it caught on fast enough wouldn't it hurt our economy more due to banks needing to restructure?

I was refering more to the issues the lenders have. But also that if one is to do an online lending system, then bitcoin might be the best option. Not to you creating a new currency system.

I was thinking U.S only atm, or at least U.S currency. I was also thinking of using an already existing system like paypal that could transfer funds quickly (within a week) from checking account to checking account.

Wouldn't it be more practical for the timeeing to use checking to checking in a system like this?
muzebreak
Posts: 2,781
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3/4/2013 9:03:26 AM
Posted: 3 years ago
At 3/4/2013 8:52:45 AM, pozessed wrote:
At 3/4/2013 8:21:22 AM, muzebreak wrote:
At 3/4/2013 8:14:40 AM, pozessed wrote:
At 3/4/2013 8:04:10 AM, muzebreak wrote:
look into bitcoin, and some of the lending companies surrounding this currency.

Not exactly what I'm thinking. If a system like that caught on and started flourishing over night, if it caught on fast enough wouldn't it hurt our economy more due to banks needing to restructure?

I was refering more to the issues the lenders have. But also that if one is to do an online lending system, then bitcoin might be the best option. Not to you creating a new currency system.

I was thinking U.S only atm, or at least U.S currency. I was also thinking of using an already existing system like paypal that could transfer funds quickly (within a week) from checking account to checking account.

Wouldn't it be more practical for the timeeing to use checking to checking in a system like this?

More practical, maybe. But people who are doing lending online would tend to be the kind of people who would rather not deal with the bank.
"Every kid starts out as a natural-born scientist, and then we beat it out of them. A few trickle through the system with their wonder and enthusiasm for science intact." - Carl Sagan

This is the response of the defenders of Sparta to the Commander of the Roman Army: "If you are a god, you will not hurt those who have never injured you. If you are a man, advance - you will find men equal to yourself. And women.
pozessed
Posts: 1,034
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3/4/2013 9:15:22 AM
Posted: 3 years ago
At 3/4/2013 9:03:26 AM, muzebreak wrote:
At 3/4/2013 8:52:45 AM, pozessed wrote:
At 3/4/2013 8:21:22 AM, muzebreak wrote:
At 3/4/2013 8:14:40 AM, pozessed wrote:
At 3/4/2013 8:04:10 AM, muzebreak wrote:
look into bitcoin, and some of the lending companies surrounding this currency.

Not exactly what I'm thinking. If a system like that caught on and started flourishing over night, if it caught on fast enough wouldn't it hurt our economy more due to banks needing to restructure?

I was refering more to the issues the lenders have. But also that if one is to do an online lending system, then bitcoin might be the best option. Not to you creating a new currency system.

I was thinking U.S only atm, or at least U.S currency. I was also thinking of using an already existing system like paypal that could transfer funds quickly (within a week) from checking account to checking account.

Wouldn't it be more practical for the timeeing to use checking to checking in a system like this?

More practical, maybe. But people who are doing lending online would tend to be the kind of people who would rather not deal with the bank.

People do any online marketing should have no problem using a system like that, and that's a lot of people.
malcolmxy
Posts: 2,855
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3/4/2013 9:16:28 AM
Posted: 3 years ago
You've got to figure how to secure these loans - you use bitcoin and provide the loans strictly online, I'll steal from you simply out of principle (you deserve to be stolen from at that point).

$USD, Western Union, Wal-Mart (I hate them, but they have a set-up for money wiring), etc, secure loans with fairly liquid assets (iPad, iPhone 4+, Samsung Galaxy 2+, car title, video game system...SOMETHING).

You hold the collateral and sell it if the borrower reneges on the loan and then immediately pay the lender.

You offering some sort of guarantee like this is the only way it will work as a new entity, and even then, it's a longshot.
War is over, if you want it.

Meet Dr. Stupid and his assistants - http://www.debate.org...
pozessed
Posts: 1,034
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3/4/2013 9:16:42 AM
Posted: 3 years ago
At 3/4/2013 9:15:22 AM, pozessed wrote:
At 3/4/2013 9:03:26 AM, muzebreak wrote:
At 3/4/2013 8:52:45 AM, pozessed wrote:
At 3/4/2013 8:21:22 AM, muzebreak wrote:
At 3/4/2013 8:14:40 AM, pozessed wrote:
At 3/4/2013 8:04:10 AM, muzebreak wrote:
look into bitcoin, and some of the lending companies surrounding this currency.

Not exactly what I'm thinking. If a system like that caught on and started flourishing over night, if it caught on fast enough wouldn't it hurt our economy more due to banks needing to restructure?

I was refering more to the issues the lenders have. But also that if one is to do an online lending system, then bitcoin might be the best option. Not to you creating a new currency system.

I was thinking U.S only atm, or at least U.S currency. I was also thinking of using an already existing system like paypal that could transfer funds quickly (within a week) from checking account to checking account.

Wouldn't it be more practical for the timeeing to use checking to checking in a system like this?

More practical, maybe. But people who are doing lending online would tend to be the kind of people who would rather not deal with the bank.

People do any online marketing should have no problem using a system like that, and that's a lot of people.

People who do*

I don't mean to come across as if "I already know" cuz I don't. I'm just stating my assumptions.
pozessed
Posts: 1,034
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3/4/2013 9:27:40 AM
Posted: 3 years ago
At 3/4/2013 9:16:28 AM, malcolmxy wrote:
You've got to figure how to secure these loans - you use bitcoin and provide the loans strictly online, I'll steal from you simply out of principle (you deserve to be stolen from at that point).

$USD, Western Union, Wal-Mart (I hate them, but they have a set-up for money wiring), etc, secure loans with fairly liquid assets (iPad, iPhone 4+, Samsung Galaxy 2+, car title, video game system...SOMETHING).

You hold the collateral and sell it if the borrower reneges on the loan and then immediately pay the lender.

You offering some sort of guarantee like this is the only way it will work as a new entity, and even then, it's a longshot.

I am not a middle man. This would be 100% risk. The borrower would have to entice a loan by offering a hefty interest rate.

You wouldn't loan a stranger in an online lending community $100 if he promised to return $130 to you in 2 months?
He also has a high reputation for returning money on time and with the interest promised.
Also, you could afford to burn that $100 bill if you decided to.
muzebreak
Posts: 2,781
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3/4/2013 9:29:40 AM
Posted: 3 years ago
At 3/4/2013 9:16:28 AM, malcolmxy wrote:
You've got to figure how to secure these loans - you use bitcoin and provide the loans strictly online, I'll steal from you simply out of principle (you deserve to be stolen from at that point).

Why?
"Every kid starts out as a natural-born scientist, and then we beat it out of them. A few trickle through the system with their wonder and enthusiasm for science intact." - Carl Sagan

This is the response of the defenders of Sparta to the Commander of the Roman Army: "If you are a god, you will not hurt those who have never injured you. If you are a man, advance - you will find men equal to yourself. And women.
malcolmxy
Posts: 2,855
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3/4/2013 9:34:04 AM
Posted: 3 years ago
At 3/4/2013 9:27:40 AM, pozessed wrote:
At 3/4/2013 9:16:28 AM, malcolmxy wrote:
You've got to figure how to secure these loans - you use bitcoin and provide the loans strictly online, I'll steal from you simply out of principle (you deserve to be stolen from at that point).

$USD, Western Union, Wal-Mart (I hate them, but they have a set-up for money wiring), etc, secure loans with fairly liquid assets (iPad, iPhone 4+, Samsung Galaxy 2+, car title, video game system...SOMETHING).

You hold the collateral and sell it if the borrower reneges on the loan and then immediately pay the lender.

You offering some sort of guarantee like this is the only way it will work as a new entity, and even then, it's a longshot.

I am not a middle man. This would be 100% risk. The borrower would have to entice a loan by offering a hefty interest rate.

You wouldn't loan a stranger in an online lending community $100 if he promised to return $130 to you in 2 months?
He also has a high reputation for returning money on time and with the interest promised.
Also, you could afford to burn that $100 bill if you decided to.

No one is going to have any experience when the 1st transaction is made. How would I know that borrower A actually had a high repayment rate?

Once some people do get some experience, how do I know that borrower A hasn't been using sock puppets and loaning money to himself using a shell account in order to get a $300 loan from some unsuspecting chump a couple months later.

This is why I said to use liquid assets like the ones I mentioned. They're nearly comoditized and there is no risk with them. They sell immediately and for a very stable price, and they're small, light and easy to ship.

Also, there are usury laws in the various states you need to consider. What you're proposing sounds a lot like a communist loan sharking network...
War is over, if you want it.

Meet Dr. Stupid and his assistants - http://www.debate.org...
pozessed
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3/4/2013 10:26:41 AM
Posted: 3 years ago
At 3/4/2013 9:34:04 AM, malcolmxy wrote:
No one is going to have any experience when the 1st transaction is made. How would I know that borrower A actually had a high repayment rate?

Once some people do get some experience, how do I know that borrower A hasn't been using sock puppets and loaning money to himself using a shell account in order to get a $300 loan from some unsuspecting chump a couple months later.

This is why I said to use liquid assets like the ones I mentioned. They're nearly comoditized and there is no risk with them. They sell immediately and for a very stable price, and they're small, light and easy to ship.

Also, there are usury laws in the various states you need to consider. What you're proposing sounds a lot like a communist loan sharking network...

Thank you sir. Your ability to think outside of the box is inspiring.

I haven't thought of that, and really don't have a good response. The only thing that comes to mind is that it would be a horrible reason to lose a reputation for possible future life improvements.
pozessed
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3/4/2013 10:58:35 AM
Posted: 3 years ago
At 3/4/2013 10:40:25 AM, ZakYoungTheLibertarian wrote:
why would u have no credit check?

Well, if everything could be set up to obtain an honest reputation system, it would be a "word of mouth" credit rating that is completely transparent in some way.
I'm thinking of a rep system set up similar to E-bay.
pozessed
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3/4/2013 11:00:38 AM
Posted: 3 years ago
That's actually a good way to describe what I'm thinking.
Peer to peer lending and E-bay meshed together without the commodities.
sadolite
Posts: 8,834
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3/4/2013 9:13:15 PM
Posted: 3 years ago
Risk is risk, The less you do to protect your self and minimise risk, the more you stand to loose. As with any business venture.
It's not your views that divide us, it's what you think my views should be that divides us.

If you think I will give up my rights and forsake social etiquette to make you "FEEL" better you are sadly mistaken

If liberal democrats would just stop shooting people gun violence would drop by 90%