Comments on: Protecting People From Themselves

By: Mark Shead

Mark Shead — Mon, 03 Nov 2008 03:46:48 +0000

@Ian – Well that isn’t particularly comforting. :)

By: Ian

Ian — Mon, 03 Nov 2008 01:58:06 +0000

@Mark – Oh, I think they are probably just as bad as you feared. Just not on this particular issue! Thanks for keeping your eyes open.

By: Mark Shead

Mark Shead — Fri, 31 Oct 2008 20:14:55 +0000

@Ian – Looks like I may have been mistaken. Some of the information I saw early on said that this was prompted by the SEC, but as you said it now looks like it is part of setting things up so Prosper can resell loans (or something like that). Thanks for pointing this out. Maybe the government isn’t as bad as I feared. :)

By: Ian

Ian — Thu, 30 Oct 2008 02:31:58 +0000

I did some snooping on wikipedia, and it appears that Prosper is applying with the SEC to allow a secondary market in their loans, that is to say, to allow lenders to sell their loans to other people. Anyway, it looks to me like the move was initiated by Prosper and nothing untoward is happening.

By: Mark Shead

Mark Shead — Wed, 29 Oct 2008 15:10:10 +0000

I’m not sure if the government wants in on the action. I think they want to protect people from getting into loans with high interest rates etc. It is kind of like the government outlawing cooking stoves because some people will get burned.

By: Josh

Josh — Wed, 29 Oct 2008 14:07:21 +0000

So – let me get this straight – a private group figured out a way to help people in need, and a government agency is blocking them from doing it because they want in on the action?

Brilliant.