Ivan Massow Joins Peer-to-Peer Lending
Peer-to-peer lending is growing fast, with new companies starting up seemingly every week.
Now entrepreneur, Ivan Massow has joined the party with a company called Massow’s Angels.
This was reported in the Independent yesterday, under a title of How Peers Can Solve Borrowing Headaches.
This is part of the report.
Funding Circle recently reported that its customers invested £6.1m in the first two months of this year and the total amount saved and borrowed at Zopa, the UK’s first peer-to-peer website, passed the £200m mark last week. Such growth prompted Andy Haldane, the head of policy at the Bank of England, to say that such peer-to-peer lenders could ultimately replace high street banks.
As if the banks hadn’t got enough problems.
Note that the Indie talks about the Peer-to-Peer Finance Association, which is a trade body created to ensure standards in the industry.
I have lent money through Zopa for several years now and get a reasonable return. In some ways though, my guarantee is in the figures, that I track every day in a spreadsheet and the fact that the company is totally open about the processes it uses. The processes must work, as at the end of May 2011, I’d earned 6 % since the start of that year. The figure is now 9.3 % for 2012, with ten days to go of the month of May.
Spanish Banks Get a Downgrade
It is being reported that Moody’s have downgraded the ratings they give to Spanish banks.
My late great friend, David, who rose to the top of a major clearing bank, had some rules about the bank you used.
One was never put your money in a bank, with its headquarters outside of the UK. He said, you haven’t got the same protection.
Breaking The 9 % Barrier
This morning, I found that my investment in Zopa has now paid 9 % since the start of the year. The actual figure is 9.04 %, but of course this is before tax, although it does include bad debts and all charges.
I think this is because a lot of older loans from 2009 and 2010 have now been fully paid and these have been replaced with ones that have a higher interest rate from the past year or so.
I think too, that good, high quality borrowers are looking at Zopa rather than the banks, which are much more expensive and have onerous terms and conditions.
It may be too, that Zopa are getting their checks better. Bad debts from various years are as follows 2008 (3), 2009(5), 2010(5). 2008 is probably low, as most loans from that year are now paid up.
Councils Told Not to Bank at Santander
Kent County Council have moved their money away from Santander according to this report. The Times is also reporting that councils should move money away from Spanish banks.
Probably this advice should be heeded by us all.
It Looks Like Greece Will Vote for Grexit
Things look difficult for Greece as it looks like they are going to have another vote according to this report. Signs are they will reject the austerity plan and thus vote for Grexit.
The Greek Economy and Breast Implants
One lady, who had the faulty PIP breast implants, has just said on Radio 5, that the surgeon who did the operation, can’t replace them with new ones, as he has gone to work in Greece.
Obviously, more than the obvious is going bust in that country.
The Grexit
The Greek Euro crisis now has its own name; the Grexit.
Greek Travel Costs
I found this article, entitled Is it cheaper to put Greek train passengers in taxis? on the BBC’s web site.
They come up with figures that show if there are more than two passengers, the taxi is cheaper.
And these figures ignore the fact that Greek Railways have borrowed €9 billion, which is all guaranteed by the Greek government.
Germany v Greece
If things work out right, Germany will play Greece on June 22nd in Euro 2012 in the midst of a Greek General Election.
What fun?
Greece Eight Weeks Away From Euro Exit
This headline was in the Sunday Times today.
So don’t book a holiday in Greece in the middle of July!
The Anonymous Widower 