The answer to the Sub Prime Crisis

You too can be your very own loan shark.

A family member turned me on to this site called Prosper.com which I think is a brilliant idea but an indication of the state of our nation. Here's the link that describes the entire process.

In a nut shell it is basically people to people lending. The site acts as the middle man and takes a cut of each transaction. It is definitely a brilliant idea and my impression that this site is on the up and up is this.

What if I have poor credit?
Prosper isn't the best place for people with bad credit. You may want to try to improve your credit score over the next few months and then apply for a loan on Prosper. If you need help with credit repair, please click here.

They are looking for qualified borrowers which is cool. What I am concerned about is that there will operations that will not be as ethical and I can see operations of this nature popping up in the near future.

Credit is dead. The housing meltdown was primarily due to cheap money based on credit. And as lending standards have tightened up, people are now looking for others sources of funds.

The banking industry should also watch this industry very, very closely. You can already get an mortgage online and if this type of lending becomes more popular, then it is going to get really hairy for the lending industry.