Grupeer Suspends Payments to Investors

Post by gullyfur » Wed, Apr 01, 2020, 1:59 PM UTC

adrr wrote: post #10

toomuchtodo wrote: post #8

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.

Post by Animats » Wed, Apr 01, 2020, 6:23 PM UTC

godzillabrennus wrote: post #14

trhway wrote: post #12

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…

If I’m reading this right then the “loan originator” is both the recipient of the Capital AND the guarantor of the buyback if it goes south. That’ll end well. Looks like a brother system team that worked in construction and moved into lending: https://www.revenue.land/grupeer-interview

Post by datingscientist » Fri, Apr 03, 2020, 2:44 PM UTC

gdm85 wrote: post #19

datingscientist wrote: post #17

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…

> That's why they froze this thing... 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...