prosper is dead

Skull and Crossbones!I have to say that the whole peer-to-peer lending world is looking shaky these days. As pointed out by my fellow Money Writer, Lazy Man, Prosper abruptly moved into their quiet period.  Prosper sent an email today saying that their quiet period was beginning, just after Lending Club finished their 6-month quiet period.  I imagine Prosper’s quiet period will be shorter, but still several months.  I’m not sure how everyone else reacts to this news, but I don’t view it as a net negative or positive for p2p lending.  I think it has a future, but I think we need to wait until Prosper is out of the quiet period to see where it’s going to go.  Zopa pulled out of the US, eliminating another p2p lender.

On the other hand…with the market as crazy as it is, I don’t think p2p lending is a bad investment at all.  These SEC requirements regarding quiet periods are strange, I’ll grant, but I’m going to keep my small investment in both Lending Club and Prosper going.  It’s a non-market investment and I’m comfortable risking a small amount of money to see where it goes – so far I’ve been collecting my money and I’m happy with the returns.  The way I see it, any “alternative” investment is worth it at this point!

photo credit: Chris Fleming