Comments on: The deal, and the catch http://blogs.reuters.com/felix-salmon/2011/02/06/the-deal-and-the-catch/ A slice of lime in the soda Wed, 19 Jun 2013 10:36:09 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: drewr http://blogs.reuters.com/felix-salmon/2011/02/06/the-deal-and-the-catch/comment-page-1/#comment-24140 drewr Sat, 19 Feb 2011 04:08:50 +0000 http://blogs.reuters.com/felix-salmon/?p=7184#comment-24140 The secondary market on Lending Club is not a market-for-lemons problem at all. The sellers in the secondary market see the same performance data as you and are no "closer" to the borrower than a prospective buyer. You don't have a market-for-lemons without information asymmetry. The secondary market on Lending Club is not a market-for-lemons problem at all. The sellers in the secondary market see the same performance data as you and are no “closer” to the borrower than a prospective buyer. You don’t have a market-for-lemons without information asymmetry.

]]> By: TFF http://blogs.reuters.com/felix-salmon/2011/02/06/the-deal-and-the-catch/comment-page-1/#comment-23784 TFF Mon, 07 Feb 2011 01:16:51 +0000 http://blogs.reuters.com/felix-salmon/?p=7184#comment-23784 "I doubt that 10% of Americans would be eligible to invest under these criteria." In 2007, more than 20% of income tax returns had an AGI in excess of $75k. And surely most of these households have $70k+ of financial assets. There are also a significant number of retirees with less income but greater than $250k of assets. I would guess that roughly 25% of households meet these criteria. “I doubt that 10% of Americans would be eligible to invest under these criteria.”

In 2007, more than 20% of income tax returns had an AGI in excess of $75k. And surely most of these households have $70k+ of financial assets.

There are also a significant number of retirees with less income but greater than $250k of assets.

I would guess that roughly 25% of households meet these criteria.

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