Post by valueinvestor123 on Feb 12, 2015 13:29:17 GMT
Currently there is clearly a oversupply of money looking to lend and an undersupply of loans so liquidity should be fairly good (which it is, most of the time). So either the rates will have to come down or the supply imbalance will have to change somehow.
I can however foresee that this equilibrium will not always stay like this and one day, it might tip the other way so that there might very easily come a liquidity crunch and money stuck in dysfunctional p2p accounts and no way to exit.
So waiting till loan maturity will be the only way to get the money out. However if on top of that there will be disproportionately high number of defaults, a lot of p2p websites might close down so waiting till maturity might not even be an option...
It would be interesting to know which platforms would be able to cope best in such a scenario or similar.
I presume that the ones which are considered to have the best liquidity currently (such as SS and AC etc) might be worst affected? Although I am not sure. It's hard to predict the domino effects.
Anyone thought about it?
It's just having been through Icesave disaster etc...
I can however foresee that this equilibrium will not always stay like this and one day, it might tip the other way so that there might very easily come a liquidity crunch and money stuck in dysfunctional p2p accounts and no way to exit.
So waiting till loan maturity will be the only way to get the money out. However if on top of that there will be disproportionately high number of defaults, a lot of p2p websites might close down so waiting till maturity might not even be an option...
It would be interesting to know which platforms would be able to cope best in such a scenario or similar.
I presume that the ones which are considered to have the best liquidity currently (such as SS and AC etc) might be worst affected? Although I am not sure. It's hard to predict the domino effects.
Anyone thought about it?
It's just having been through Icesave disaster etc...