In this issue

Jonathan Tobin: Defending the Right to a Jewish State

Heather Hale: Compliment your kids without giving them big heads

Megan Shauri: 10 ways you are ruining your own happiness

Carolyn Bigda: 8 Best Dividend Stocks for 2015

Kiplinger's Personal Finance editors: 7 Things You Didn't Know About Paying Off Student Loans

Samantha Olson: The Crucial Mistake 55% Of Parents Are Making At Their Baby's Bedtime

Densie Well, Ph.D., R.D. Open your eyes to yellow vegetables

The Kosher Gourmet by Megan Gordon With its colorful cache of purples and oranges and reds, COLLARD GREEN SLAW is a marvelous mood booster --- not to mention just downright delish
April 18, 2014

Rabbi Yonason Goldson: Clarifying one of the greatest philosophical conundrums in theology

Caroline B. Glick: The disappearance of US will

Megan Wallgren: 10 things I've learned from my teenagers

Lizette Borreli: Green Tea Boosts Brain Power, May Help Treat Dementia

John Ericson: Trying hard to be 'positive' but never succeeding? Blame Your Brain

The Kosher Gourmet by Julie Rothman Almondy, flourless torta del re (Italian king's cake), has royal roots, is simple to make, . . . but devour it because it's simply delicious

April 14, 2014

Rabbi Dr Naftali Brawer: Passover frees us from the tyranny of time

Greg Crosby: Passing Over Religion

Eric Schulzke: First degree: How America really recovered from a murder epidemic

Georgia Lee: When love is not enough: Teaching your kids about the realities of adult relationships

Cameron Huddleston: Freebies for Your Lawn and Garden

Gordon Pape: How you can tell if your financial adviser is setting you up for potential ruin

Dana Dovey: Up to 500,000 people die each year from hepatitis C-related liver disease. New Treatment Has Over 90% Success Rate

Justin Caba: Eating Watermelon Can Help Control High Blood Pressure

The Kosher Gourmet by Joshua E. London and Lou Marmon Don't dare pass over these Pesach picks for Manischewitz!

April 11, 2014

Rabbi Hillel Goldberg: Silence is much more than golden

Caroline B. Glick: Forgetting freedom at Passover

Susan Swann: How to value a child for who he is, not just what he does

Cameron Huddleston: 7 Financial Tasks You Should Tackle Right Now

Sandra Block and Lisa Gerstner: How to Profit From Your Passion

Susan Scutti: A Simple Blood Test Might Soon Diagnose Cancer

Chris Weller: Have A Slow Metabolism? Let Science Speed It Up For You

The Kosher Gourmet by Diane Rossen Worthington Whitefish Terrine: A French take on gefilte fish

April 9, 2014

Jonathan Tobin: Why Did Kerry Lie About Israeli Blame?

Samuel G. Freedman: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Jessica Ivins: A resolution 70 years later for a father's unsettling legacy of ashes from Dachau

Kim Giles: Asking for help is not weakness

Kathy Kristof and Barbara Hoch Marcus: 7 Great Growth Israeli Stocks

Matthew Mientka: How Beans, Peas, And Chickpeas Cleanse Bad Cholesterol and Lowers Risk of Heart Disease

Sabrina Bachai: 5 At-Home Treatments For Headaches

The Kosher Gourmet by Daniel Neman Have yourself a matzo ball: The secrets bubby never told you and recipes she could have never imagined

April 8, 2014

Lori Nawyn: At Your Wit's End and Back: Finding Peace

Susan B. Garland and Rachel L. Sheedy: Strategies Married Couples Can Use to Boost Benefits

David Muhlbaum: Smart Tax Deductions Non-Itemizers Can Claim

Jill Weisenberger, M.S., R.D.N., C.D.E : Before You Lose Your Mental Edge

Dana Dovey: Coffee Drinkers Rejoice! Your Cup Of Joe Can Prevent Death From Liver Disease

Chris Weller: Electric 'Thinking Cap' Puts Your Brain Power Into High Gear

The Kosher Gourmet by Marlene Parrish A gift of hazelnuts keeps giving --- for a variety of nutty recipes: Entree, side, soup, dessert

April 4, 2014

Rabbi David Gutterman: The Word for Nothing Means Everything

Charles Krauthammer: Kerry's folly, Chapter 3

Amy Peterson: A life of love: How to build lasting relationships with your children

John Ericson: Older Women: Save Your Heart, Prevent Stroke Don't Drink Diet

John Ericson: Why 50 million Americans will still have spring allergies after taking meds

Cameron Huddleston: Best and Worst Buys of April 2014

Stacy Rapacon: Great Mutual Funds for Young Investors

Sarah Boesveld: Teacher keeps promise to mail thousands of former students letters written by their past selves

The Kosher Gourmet by Sharon Thompson Anyone can make a salad, you say. But can they make a great salad? (SECRETS, TESTED TECHNIQUES + 4 RECIPES, INCLUDING DRESSINGS)

April 2, 2014

Paul Greenberg: Death and joy in the spring

Dan Barry: Should South Carolina Jews be forced to maintain this chimney built by Germans serving the Nazis?

Mayra Bitsko: Save me! An alien took over my child's personality

Frank Clayton: Get happy: 20 scientifically proven happiness activities

Susan Scutti: It's Genetic! Obesity and the 'Carb Breakdown' Gene

Lecia Bushak: Why Hand Sanitizer May Actually Harm Your Health

Stacy Rapacon: Great Funds You Can Own for $500 or Less

Cameron Huddleston: 7 Ways to Save on Home Decor

The Kosher Gourmet by Steve Petusevsky Exploring ingredients as edible-stuffed containers (TWO RECIPES + TIPS & TECHINQUES)

Jewish World Review March 27, 2008 / 20 Adar II 5768

Brother, Can You Spare A Grand?

By Lloyd Garver

Printer Friendly Version
Email this article

http://www.JewishWorldReview.com | The latest development coming out of the current financial crisis is that individuals — regular people like you and me — are becoming banks. It's called Peer to Peer Lending. The idea is that the lender's money can earn more interest than if it were in a bank, and the borrower can borrow at a lower rate than if he or she went to a traditional lending institution. When I first heard about it, I knew right away it wasn't for me. I don't want to be a bank. For one thing, where would I get ten tellers to stand around talking while only one teller's window's open?

This kind of lending is becoming big business. Those who tout it say that it's a process in which "everybody wins." As if that's not a large enough red flag, the companies who run these things -- and who take a cut for themselves -- do it on the internet. The borrower and lender never meet, they just communicate online. I don't want to get my finances involved in a system that has the same rules as a porn chat room.

The websites try to create the atmosphere of a community, a club. Prospective lenders don't just consider the financial condition of the would-be borrower. They can use any criteria they want. According to those who have been studying these places, the lender will often decide which person to lend his money to based on that person's interests and hobbies. I don't know much about economics, but I'm not going to fork over my money to somebody just because he collects clocks.

Borrowers don't need to put up any collateral. They're often people who couldn't qualify for a loan elsewhere. One Peer to Peer company only requires that the borrower be a United States resident with a credit score of at least 520, a bank account, and a Social Security number. They don't even have to own a wallet.

So this system allows people whose credit isn't great to borrow money from people who set their own interest rates and make up the rules as far as who qualifies for a loan. Isn't that how we got into this financial mess in the first place?

But even if this thing didn't look like it was a disaster waiting to happen, I still wouldn't want to become a bank. There are too many decisions. Would I have to hire a guard? Should I validate parking? Should I close early on Halloween?

There's another reason why I don't want to get involved in this thing. What happens if the person I lend the money to can't pay it back? I don't have the right kind of personality to chase people for money. I don't want to be seen as the cruel, impersonal bank that's not allowing a mom and dad to buy a birthday gift for their kid. I don't want to see their noses pressed against my computer Windows as they beg for a little more time.

In this digital age, some people feel very close to those they "meet" on the internet. I think that's one of the biggest problems of Peer to Peer "communities." If you're wise, the only circumstance in which you lend money to a friend is if you don't ever expect to be paid back. Otherwise, bad feelings, lost money, and recriminations are bound to follow — even if you have common interests and a "really good feeling" about the other person.

Let's face it. With the exception of governments, banks are probably universally hated more than any other institution. They're seen as heartless, unfair, and as really hard places to find the bathroom. Why would people want to take over those negative feelings? I say we stick with tradition. If we have to hate, let's keep hating the banks instead of each other.

Every weekday JewishWorldReview.com publishes what many in the media and Washington consider "must-reading". Sign up for the daily JWR update. It's free. Just click here.

JWR contributor Lloyd Garver has written for many television shows, ranging from "Sesame Street" to "Family Ties" to "Frasier." He has also read many books, some of them in hardcover. Comment by clicking here. Visit his website by clicking here.


© 2008, Lloyd Garver