Archive for finance

A Company to Watch: Prosper Could Start a New War on Banking Industry

Posted in Uncategorized with tags , , , , , on April 16, 2010 by atmaweapon42

I have written quite a bit on the potential of social networking and Web 2.0 technology to shake up the banking industry. Now it looks like Prosper, a peer to peer lending company, has jumped a few regulatory hurdles and secured another round of capital.

As usual, here is the venerable Techcrunch article, reporting the story with emotionless journalistic gusto.

This is exactly the kind of technological/financial development I have been hoping for, and Prosper is only one member of a growing group of peer to peer lending networks.

It may not seem like much now, and the business model for a community like this will easily be intimidated by the recent collapse of Ning.

The secured investment is encouraging to be sure, but for these networks to become a real threat to the established banking titans it will require the efforts of bloggers and promoters, willing to put their time and money behind a radical new financial model.

I am planning to create a list of innovative financial start ups with the potential to create more real capitalism and competition in a rotten banking market. Check in as I expand and grow this list. I will watch Prosper, and the other young companies closely.

What do these companies need to do in order to become financially solvent? How can they change our current financial world?

Of course, here is the link to Prosper.


Viking Banks and Corrupt Politicians? The Net Gen Can Clean Up this Mess

Posted in Uncategorized with tags , , on April 7, 2010 by atmaweapon42

I just finished reading the latest tirade against Wall Street, penned by Rolling Stone’s own Matt Taibbi. If you have not had the chance to pick up the latest Rolling Stone, head out to your nearest seller of dino magazines and read his piece titled “Looting Main Street.” Frankly, I have never encountered a writer who can clarify the financial mud so well and actually turn it into an enthusiastic read.

Here is his blog.

Taibbi does a great job explaining this crisis, but he falls tragically short on ideas about fixing the problem. His latest post “Babies and Bathwater,” ponders the polarizing nature of any suggested solution to the banking crisis issue, as a blogger relents his suggestion to increase the government’s power to regulate the banks when corrupt politicians are part of the problem.

Taibbi is right to lament this immediate stalemate tactic, because the discussion does truly never move in any direction. However, the anonymous blogger DOES have a point. Both government AND businesses are institutions in need of dire reform, and both contributed in some way to the current crisis, both in housing and in the now exploding municipal fraud cases.

Looking at Taibbi’s articles has given me an idea about how to counteract both of these annoying truths in one fell swoop, though it will take a bit of time.

Digital democracy needs to be the next step in the evolution of the American political system. So much time and money is wasted in the election of representatives, paying their salaries, and financing their constant corruption. I believe digital representation through a more direct vote system could clean up a great deal of waste in Washington and make government a more streamlined and accountable force in modern society.

If you look around my blog a bit, you will see that my constant solution to every modern problem is rooted in the development of technology. In this case, we already have many of the resources we need to create a more direct democracy, hell American Idol already does it.

I'm a patriot!!!

As much as I hate the banks Matt, I don’t think more government intervention is the answer. Innovation and a resurgence of real capitalism through web 2.0 innovation is the only way to tame that beast. The right’s talking points may be stupid and banal, but sometimes there can be a little hint of truth to there.