Jan
16
What Prosper.com Taught Me About Risk
January 16, 2009 | Leave a Comment
In 2007 I started investing with Prosper.com. Prosper is a peer to peer lending website. I thought I was investing cautiously, only choosing to loan to people with good or very good credit (A & AA). Boy was I wrong. I learned some valuable lessons about risk and predicting the future.
With Prosper, like all my [...]
Dec
17
Best Investments in a Depression
December 17, 2008 | 8 Comments
A financial apocalypse descends on the US and the world. Stock Market returns are terrible. Treasury Bills have a negative return. CD rates are falling. What do you put your money in times like these?
A few people have asked me, where do you put your money now? Nothing is safe and the sky is falling. [...]
Oct
15
Why A Mortgage Increases Your Risk
October 15, 2008 | 1 Comment
Or rather, why does any debt increase risk? Take a look at Wall Street now. Debt (over leveraging) and randomness wiped out every independent investment bank on Wall Street. Those that didn't fail are probably going to get nationalized (thank you comrade Bush).
The banks failed ultimately because they ran out of capital. They had too [...]
Oct
14
A House is a Consumer Good Part 2
October 14, 2008 | 2 Comments
I published an article about house as consumer goods over the weekend that was meant as a draft. So instead of fixing that post, I'll finish my thought in this post. Houses are consumer goods.
A house is not an investment. A house is a place to live.
Definition of Consumer Goods From Answers.com:
Goods bought for personal [...]
Sep
21
Why Money Market Funds Aren't Safe
September 21, 2008 | Leave a Comment
Many people think money market funds are as safe as bank deposits or certificates of deposit. Many people are wrong.
When you buy a CD or deposit money into a demand deposit (checking or savings) account, the government (FDIC) will insure your money up to a certain limit, usually no less than $100,000.
However with with money market [...]
Jul
7
Moving My Money Away From Prosper
July 7, 2008 | 1 Comment
I just transferred my current balance out of Prosper.com. I know they've made some changes recently but I'm not going to bid on new loans. It's just way too risky.
I've posted about my experience with Prosper.com in previous articles. Here's an index of my articles on prosper.com.
Peer to Peer Lending with Prosper Et Al.
What is [...]
Jun
17
What Is Flood Insurance?
June 17, 2008 | Leave a Comment
Every year people and property are devastated by floods. Floods can strike anywhere. The government established National Flood Insurance Program (NFIP) to help deal with the financial cost of flooding. Find out how the flood insurance works.
Even with modern management techniques, floods happen every year. Look at the recent Katrina disaster or the flooding [...]
Apr
9
Lending Money on Prosper: My Results
April 9, 2008 | 4 Comments
This is the 4th post in a series of articles about Prosper.com. Prosper is a person to person lending site with an auction format similar to EBay. I’ve been lending money on Prosper for awhile. In this article I’ll write about my results.
In my previous articles, I’ve discussed how Prosper.com works and the risks [...]
Apr
8
Lending Money on Prosper: What Are the Risks?
April 8, 2008 | 2 Comments
This is the 3rd post in a series of articles about Prosper.com. Prosper is a person to person lending site with an auction format similar to EBay. If you’re a lender you may want to consider the risks of lending money on Prosper before you start loaning money.
In my previous article on Prosper, [...]
Apr
2
Top 10 Riskiest Real Estate Markets According to Forbes
April 2, 2008 | 1 Comment
Forbes.com has compiled a list of the 10 real estate markets with the most risk. Are you living in one of these areas right now? What makes these areas so risky? Let’s find out.
10. Atlanta, Georgia
At number 10 we have Atlanta, GA. "Hotlanta" is not so hot when it comes to real [...]