He doesn't say anything we didn't already know.
These are valid concerns. They are not conclusions about the future tho. He doesn't predict the future, so he can't be "wrong". !!!
Even tho LC's product returns are lower than they used to be, banks are still increasing the amount they put into LC each quarter. He sounds like he's trying to make a connection between returns going down and banks decision-making, but he fails to complete the argument.
What is a reasonable return for this product? Hard to say. As an investor I'd like to get the outrageously great returns I got a few years ago, but apparently that is no longer possible.
If the product returns had stayed what they were a few years ago, then LC's stock would have been worth the IPO price, because they would have continued to grow really fast. As is often the case, real events proved a little more difficult than that.
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