Marketplace Lenders Are a Systemic Risk

[sean bash]

This is a pretty sobering take...
http://www.americanbanker.com/bankth...1076047-1.html

[Investor]

I think that's a very realistic take. There is a reason Venture Capital has terrible returns (as an asset class and of course there is a distribution with the top performers doing very well) and it's because they get very excited about new technology and irrationally throw capital at whatever sounds cool. I would speculate that most VC's are better at marketing than they are at investing hence why VC keeps raising money despite the lousy #'s. The amount of carnage in the Fintech space during the next downturn will be something to see.