Back in 2007-2008, interest rates were high, credit was tightening, and the stock market was tanking. LC and Prosper gave small investors a chance to profit from the loan market without investing in a traditional bank. Now, it is almost the exact opposite; interest rates are relatively low and there is lots of competition in the loan market. Large investors looked down at us guinea pigs, determined there is money to be made here, and have thrown huge sums of cash at Lending Club and Prosper. I’m not worried about LC going out of business. I’m worried they are going to shut down the marketplace, securitize the loans, downgrade expectations, and tell small investors to take a hike. Even if Renaud Laplanche spun up another marketplace, I don’t think I would trust my money with him again. LC still has integrity issues from the Laplanche days they need to work out, but they are so flush with institutional money, they just don’t care.