[LINK] P2P banking? Ditch the bank – borrow from the crowd

[Kim Holburn]

On 2011/Dec/13, at 9:18 PM, Fernando Cassia wrote:

> On Tue, Dec 13, 2011 at 06:59, Kim Holburn <kim at holburn.net> wrote:
>> 
>> This kind of "citizen banking" should be reshaping the business of borrowing and lending, and shaking the foundations of the financial industry in a way no amount of Occupy Wall Street protesting could accomplish.
> 
> I this idea of people loaning to other people predates the "interweb"
> and the "intertubes", to paraphrase my colleague Nick Farrell. ;-)
> 
> How were them called? Oh yes... http://en.wikipedia.org/wiki/Loan_shark

They are also called banks.  You might try having a read of the article it talks about most of the issues you just brought up.  

> The biggest hold up, IMHO, even in the event of the lack of physical
> violence to collect due payments, is that the chances of collecting
> payments decrease the farther the lender is from the borrower.
> 
> Plus, the lender has no way to know if the borrower is who he claims
> to be -even if the person exists- (I could be Vladimir Putin who
> created a Latin American identity, for all you know). [insert evil
> laugh here]
> 
> I assume it could work on a strictly _LOCAL_ basis (ie people from the
> same neighbourhood lending to neighbours). But then, closeness would
> lead to... what was it called? Oh yes...
> http://en.wikipedia.org/wiki/Loan_shark
> 
> ;-)
> FC
> _______________________________________________
> Link mailing list
> Link at mailman.anu.edu.au
> http://mailman.anu.edu.au/mailman/listinfo/link

-- 
Kim Holburn
IT Network & Security Consultant
T: +61 2 61402408  M: +61 404072753
mailto:kim at holburn.net  aim://kimholburn
skype://kholburn - PGP Public Key on request