Stories this morning in the New York Times, TechCrunch, and Valleywag are spelling the doom of the peer-to-peer lending business. Battered by high default rates, regulatory blocks, and investors skittish to fund new concepts with their own cash, the model appears to be one for happier times. In this economy, who wants to monkey around with flaky Web 2.0 financial instruments?
But perhaps it's not the model itself that's flawed, it's just the implementation and the timing. One of the peer-to-peer lenders, Lending Club, just this week received regulatory approval to pursue not just peer-to-peer lending … Read more