Also in this playlist...
This transcript is automatically generated
And everybody's getting easy Google apparently -- this new huge target.
I watched the Dow every day and -- apparently it seems to close at a record level almost every day you know.
What everything he's pretty rosy in the US economy one wouldn't think -- huge win seven insecure about that and the frightening pet there's a distinction that.
A pretty significant distinction between how well the stock market is doing.
And how well the real economy is doing an ally you know look I don't want to throw cold water on this but I don't.
I don't want people do well look the Fed wants you to think.
That because the stock market is going up because asset prices are increasing everything is good in their four people had a good mood in the -- spend money and it may well work.
It's just that it's not working yet.
In a lot of companies are not really taking risks and yet there were some disappointing economic data today but the fact of the matter is -- we talked about last week the Fed is pumping so much liquidity into the system.
Literally the money how.
-- go somewhere.
And a lot of it is warning up in the stock market so that way we're going boom in the stock market now are.
I get -- some people saying this is just a prelude to another big fat -- look I -- -- agree with -- I've never heard more divergence of opinion in terms of okay person -- out where would this look this is real this is a you know the stock market signaling a robust economy and other people are saying hey.
Get ready for the biggest collapse the biggest -- this is just deja Vu all over again it's the bubble of 2000 it's a bubble of 2000 NA.
And now it's going to be global 2013.
In these big crashes are coming faster and faster.
Because every time they happen but the -- just pumps money into the system faster -- -- but we haven't dealt with the core issue.
Too much debt -- I don't and to -- too much debt.
There's a lot of people who are still at that looking for loans whether they be.
You know thousand dollars and up to -- wherever they go and you were dead racing this interest in point -- me recently about he would appeal lending and how that can be of great benefit to feed to.
People what -- -- So one of the more interesting maybe being those interest a new development in no way -- business and finance just works that that we've seen and in just an awfully long time.
So the basic idea is that they were a couple of really high caliber well established web sites.
That do this -- Peer to peer lending that facilitate their frankly they're kind of -- -- mediating the banks -- they're taking on gifts into mediating -- -- mediating.
The banks very good I have no idea what that.
It's a very good word that means just pulling right out of the middle of things so another would you would you as the media is Jonathan -- I wanna borrow five -- don't want have.
I instead of going to my bank and -- -- I -- a -- tonight I logon yell and I go to this website yeah I'm borrowing the money from a.
This particular company it's not like no 109 and -- know you know barring it from accompanied all that's kind of the whole idea peer to peer.
Means that both sides are the same sort of broad -- -- they're here they're people.
So what's going on is that people with money sabres whose CD rates start with a decimal point these days who and who can't find a way to investigate any yield.
Our lending directly too.
Individual borrowers on the other side who.
Many of whom for example are paying down high credit card debt they take 18% debt.
And it for them to take out a 9% loan and pay off the 18% credit card debt while that's a screamer.
For these guys over here there's the sabres who can't find any good place to put their money.
One or 2% is what they're -- now the idea -- -- -- maybe 9%.
Looks awfully sweet -- and so these peer to peer lending platform sit in the middle and they facilitate.
These kinds of loans going back and forth and one of the best things about them is they've kind of matured -- And what's happening a lot of times for the lenders if you want to make alone keep your toe win put in five or 101000 dollars.
What happens is that that money is dispersed across a whole group.
Of lenders it's broken up in a little teeny chunks -- and spread out a bunch of across a bunch of different borrowers.
So you're not -- all -- your eggs on one particular individual.
Unless you want to you can if you wish.
So that this dead -- dispersant.
Rifts that diversity of risk.
Means that you can pretty much look at the -- look at the credit scores and no you know OK -- out a few percent are gonna default but most of these people are gonna pay me back all win.
I'm gonna make 6789%.
And I just can't do that anywhere else on this is.
And on the on the other side of that as they borrow up this is just to go ahead it's a Smart way to consolidate credit card debt facility -- drowning a little bit.
Absolutely I mean it's actually the number one -- -- -- -- to being used other people borrow because they wanted to they want expander drive clean your -- or or you know small businesses will will borrow in this particular white.
But it really is a fascinating idea.
Because it's bringing down the total debt load out there on consumers on the one hand and on the other hand finally giving a sabres.
A place that they can go with their money -- the interesting things is you can do what the biggest one you know I'm not recommending any particular one here but just so you know the biggest one.
It's called the lending club it's been a rep for many years has got about a billion and a half dollars of loans out right now so this isn't some.
You know new idea.
You can go up on these sites and you can.
See individual bars what kind of people over there a date because when you borrow you go on create little profile you say this is why wanna borrow the money this is why I'm going to be able to pay it back.
The -- check out your credit scores verify your employment history do some basic due diligence on -- -- isn't as a lender you can either say hey I love that story and -- lend them money or I want to have my money dispersed across a bunch of different people.
And you can get in for very small amounts of money tested out check it out -- interesting.
Filter by section