I am not sure who all is familiar with prosper.com, virgin money, or websites like that but I had a question. These are all lending and borrowing websites that are completely natural. No gov’t oversight, no govt regulation and no gov’t insurance (for now anyway). I think we all agree that interest rates at most member banks are artificially low. Right now on these websites the interest rates range from 7.7% for good borrowers and 20% for high risk borrowers. I am not too familiar with their system but they seem to have created their own credit rating and don’t use the big three.
My question: Do you think these interest rates are roughly what they should be nationally if there was no gov’t intervention??
Is this a good reflection of hopes for an “Austrian” future?? Since this requires a 100% reserve requirement (you actually have to part with all the money you lend and can just create checkbook money), do you think this is a great model to incorporate technology and REAL banking? Or am I missing something completely???