11–20 of 25 posts
Earlier quoted context omitted.
Prosper and LendingClub loan marketplaces are of similar high risk profile in the US (the only borrowers on those platforms are those who couldn’t borrow from banks or other traditional lenders). I expect those investors will end up with interest and principal losses as well, the cost of investing in consumer subprime debt.
Didn’t that happen during the last recession? I don’t understand why people still put money into these unsecured loan companies.
Reads like a typical Ponzi scheme that just collapsed. If they were for real, they'd announce reduced revenue and show financial statements. Sure, they're experiencing some bad debt. But not 100%.
doesn't sound that way https://www.grupeer.com/why-grupeer
"Grupeer is different from other p2p investment platforms. We are creating a safe environment for our clients and offer three different investment types. Our primary objective is to bring high returns to our clients with minimal risk."
and on the same page below:
"Secondly, investments are secured with BuyBack Guarantee. This means that if the borrower goes bust, our partner- the loan originator is required to buyback the defaulted loan and insure the repayment of the principal and interest in full amount."
Reads like a typical Ponzi scheme that just collapsed. If they were for real, they'd announce reduced revenue and show financial statements. Sure, they're experiencing some bad debt. But not 100%.
>a typical Ponzi scheme that just collapsed. doesn't sound that way https://www.grupeer.com/why-grupeer "Grupeer is different from other p2p investment platforms. We are creating a safe environment for our clients and offer three different investment types. Our primary objective is to bring high returns to our clients with minimal risk." and on the same page below: "Secondly, investments are secured with BuyBack Guar…
Reads like a typical Ponzi scheme that just collapsed. If they were for real, they'd announce reduced revenue and show financial statements. Sure, they're experiencing some bad debt. But not 100%.
>a typical Ponzi scheme that just collapsed. doesn't sound that way https://www.grupeer.com/why-grupeer "Grupeer is different from other p2p investment platforms. We are creating a safe environment for our clients and offer three different investment types. Our primary objective is to bring high returns to our clients with minimal risk." and on the same page below: "Secondly, investments are secured with BuyBack Guar…
That’ll end well.
Looks like a brother system team that worked in construction and moved into lending:
Reads like a typical Ponzi scheme that just collapsed. If they were for real, they'd announce reduced revenue and show financial statements. Sure, they're experiencing some bad debt. But not 100%.
>a typical Ponzi scheme that just collapsed. doesn't sound that way https://www.grupeer.com/why-grupeer "Grupeer is different from other p2p investment platforms. We are creating a safe environment for our clients and offer three different investment types. Our primary objective is to bring high returns to our clients with minimal risk." and on the same page below: "Secondly, investments are secured with BuyBack Guar…
That's classic ponzi language.
Upside and risk go hand in hand. You can't sustainably produce one without the other, else everyone would be infinitely wealthy.
Reads like a typical Ponzi scheme that just collapsed. If they were for real, they'd announce reduced revenue and show financial statements. Sure, they're experiencing some bad debt. But not 100%.
>a typical Ponzi scheme that just collapsed. doesn't sound that way https://www.grupeer.com/why-grupeer "Grupeer is different from other p2p investment platforms. We are creating a safe environment for our clients and offer three different investment types. Our primary objective is to bring high returns to our clients with minimal risk." and on the same page below: "Secondly, investments are secured with BuyBack Guar…
They're going to do everything they can to weasel the language into making it sound like it isn't, when it really is.
- 30% household unemployment
- 90+ day shutdown of most retail / service businesses
- Implicit Mortgage and Rent holidays (no enforcement)
- Other household assets are tanking (stocks, real estate)
- Small business restart will be brutal, since the personal balance sheets & credit of owners are getting devastated
So... payment on unsecured loans... bwhahahahah. Speaking as a former banker, I'm guessing what - a 40% delinquency rate during Q2 and part of Q3? We're not just talking about the unemployed people - others have hours cut, money lost on investments, business slowdowns, etc.
Not to mention most of the population probably won't give a damm about you trashing their credit score at this point. What's the point? It's all crap now...
Oh wait... I haven't gotten to the best part. If a loan is 60 days delinquent, these guys have to buy it back per the terms of their deal. That's why they froze this thing...
At this point, it is a race between their cash reserves (what % they held back to support buybacks) and the unknown peak of a massive wave of 60 day delinquencies....
Earlier quoted context omitted.
>a typical Ponzi scheme that just collapsed. doesn't sound that way https://www.grupeer.com/why-grupeer "Grupeer is different from other p2p investment platforms. We are creating a safe environment for our clients and offer three different investment types. Our primary objective is to bring high returns to our clients with minimal risk." and on the same page below: "Secondly, investments are secured with BuyBack Guar…
> high returns to our clients with minimal risk That's classic ponzi language. Upside and risk go hand in hand. You can't sustainably produce one without the other, else everyone would be infinitely wealthy.
For an unsecured lender, this is basically the apocalypse. Let's do the math - numbers are US, but most of the major Western economies are going through some version of this. - 30% household unemployment - 90+ day shutdown of most retail / service businesses - Implicit Mortgage and Rent holidays (no enforcement) - Other household assets are tanking (stocks, real estate) - Small business restart will be brutal, since…
You're picturing it "too honest": there are allegations of misconduct which I am afraid (given the bad quality of the recent official posts) might be true, see for example:
https://kristapsmors.substack.com/p/covid-19-first-p2p-victi...