57 replies to this topic

[propman]

Oldnick, on 27 March 2012 - 20:09, said:

- you'll be saying National Insurance is a Ponzi scheme next.

[CKemahli]

Ha it sort of is, more and more young people having to fund diminishing returns for those who paid in initially!!

[chilterncom1]

CKemahli, on 28 March 2012 - 09:02, said:

Ha it sort of is, more and more young people having to fund diminishing returns for those who paid in initially!!

With the number of young people in employment seemingly diminishing, there actually appear to be fewer and fewer of them providing the funding.

[G00dman]

Oldnick, on 27 March 2012 - 20:09, said:

How ridiculous - you'll be saying National Insurance is a Ponzi scheme next.

And my pension scheme oooh errr    

Ponzi and Madoff targeted individual wealthy people.  Zopa is open to anyone.  I personally know 5 lenders and 1 borrower, so at least some money does get leant out.  It's fair to question any investment opportunity, though.  There have been too many 'scams and schemes', for anyone to be complacent.  Part of the strength of Zopa is this forum where questions like this can be freely debated.  That was one of the plus points that gave me confidence to save with Zopa.  I am also delighted to say that requested withdrawals have always made without a hitch

[Oldnick]

CKemahli, on 28 March 2012 - 09:02, said:

Ha it sort of is, more and more young people having to fund diminishing returns for those who paid in initially!!

Oops! Didn't finish with a tongue-in-cheek emoticon. Sorry.

What do they all mean anyway? It's a mysteron to me

[Tealer]

My friend took out a loan and I was one of his lenders for a considerable sum (it was a listing). All worked as it should!

[Oldnick]

G00dman, on 28 March 2012 - 11:51, said:

And my pension scheme oooh errr    

Actually, thinking about it, the entire financial system is a Ponzi scheme.
If everybody attempted to withdraw their wealth to convert it into a pile of cash, the **** would hit the fan. If the Government printed enough bank notes so that they could withdraw it, and they all tried to spend it at once, it would all burn up in an inflationary Armageddon.
But don't worry. The fundamental needs in life are sex, food and shelter. If you've had access to them you've already succeeded.

For further reading go to the joke thread (page 54)and remember the mayonaisse jar.

(and no, you can't have all my pretend money, what would I pretend with then?)

[Woods]

Oldnick, on 27 March 2012 - 20:09, said:

How ridiculous - you'll be saying National Insurance is a Ponzi scheme next.

Hard to prove but I would imagine that after 5 years the scheme has attracted a medium of attention from various legal groups..

[Oldnick]

Woods, on 30 March 2012 - 10:05, said:

Hard to prove but I would imagine that after 5 years the scheme has attracted a medium of attention from various legal groups..

Not sure I follow, can you elaborate?

[figures18]

I couldn't find the thread I posted in last year so I'll post in this thread as it seems pretty appropriate.

The Zopa accounts for the year end 31 Dec 2011 are now available to buy from Companies House for £1.  I've only had a cursory glance but all looking good and heading in the right direction.  We're in the Black at long last  

Giles, I'm miffed, I've been checking Companies House periodically last couple of weeks and missed your signing them off and my downloading them this evening by 9 days; damn.  Must do better next year  

Edited by figures18, 30 March 2012 - 19:49.

[JJ07]

ladyliberty, on 27 March 2012 - 16:35, said:

Zopa's lenders select themselves and could opt to receive their money back in a little over three years or faster via rapid return if disaster struck.

Maybe that's why the aforementioned computer system adds so many late payments - to ensure that only a portion of funds are available for rapid return so the whole house of cards doesn't fall down if too many lenders withdraw their money at once?  
That locks in enough funds to keep everything moving along, and the computer can declare sufficient "bad debt" to achieve the profit it is configured to generate...

Sounds like an interesting busines model...maybe I should start programmnig  

[Uncle Tone]

figures18, on 30 March 2012 - 19:49, said:

I couldn't find the thread I posted in last year ....

That's it then. Hunker down, folks, 'tis the end of civilisation as we know it....

[sl75]

figures18, on 30 March 2012 - 19:49, said:

I couldn't find the thread I posted in last year ...

You weren't thinking of the one from 2 and a half years ago were you?
http://talk.zopa.com...?showtopic=4845

[figures18]

sl75, on 31 March 2012 - 22:09, said:

You weren't thinking of the one from 2 and a half years ago were you?

Thanks No, I knew where the Chat one was, last years was in the Lending Forum.

Uncle Tone, on 31 March 2012 - 21:55, said:

That's it then. Hunker down, folks, 'tis the end of civilisation as we know it....

Actually Uncle T you'll be pleased to know I've found it   In the Zopa ceases trading thread !!

Edited by figures18, 31 March 2012 - 22:45.

[elljay]

figures18, on 31 March 2012 - 22:36, said:

Uncle Tone, on 31 March 2012 - 21:55, said:

That's it then. Hunker down, folks, 'tis the end of civilisation as we know it....

Actually Uncle T you'll be pleased to know I've found it  [/post]

Phew!  Stand down the tinned beans..!

[Toffeeboy]

JJ07, on 31 March 2012 - 12:58, said:

Maybe that's why the aforementioned computer system adds so many late payments - to ensure that only a portion of funds are available for rapid return so the whole house of cards doesn't fall down if too many lenders withdraw their money at once?  
That locks in enough funds to keep everything moving along, and the computer can declare sufficient "bad debt" to achieve the profit it is configured to generate...

Sounds like an interesting busines model...maybe I should start programmnig  

But Rapid Return is only available if the funds are on offer at lower rates. Rapid Return has never been a guaranteed method of disposing of your loans in the case of an emergency. With the lending rates now creeping upwards then a few lenders who leant at low rates could struggle to RR their loan books now.

Zopa doesn't buy back the loans from you when you want out, it tries to broker a sale between you and another lender, charging a 1% fee.

[PoohBah]

Toffeeboy, on 02 April 2012 - 10:17, said:

But Rapid Return is only available if the funds are on offer at lower rates. Rapid Return has never been a guaranteed method of disposing of your loans in the case of an emergency. With the lending rates now creeping upwards then a few lenders who leant at low rates could struggle to RR their loan books now.

Zopa doesn't buy back the loans from you when you want out, it tries to broker a sale between you and another lender, charging a 1% fee.

I think you have missed the underlying point behind JJ07's light-hearted post: that loans which have ever been flagged for a late payment are ineligible for RR.

[Toffeeboy]

PoohBah, on 02 April 2012 - 11:03, said:

I think you have missed the underlying point behind JJ07's light-hearted post: that loans which have ever been flagged for a late payment are ineligible for RR.

Nope I got that but I was pointing out that whilst if everyone tried to pull their money out at the same time it would halt the supposed pyramid, this isn't possible because RR uses money from current offers so there is a limited amount of funds available. All Zopa would do is say sorry there aren't the funds available at these rates for you to RR anything!!!

[Oldnick]

Toffeeboy, on 02 April 2012 - 11:42, said:

Nope I got that but I was pointing out that whilst if everyone tried to pull their money out at the same time it would halt the supposed pyramid, this isn't possible because RR uses money from current offers so there is a limited amount of funds available. All Zopa would do is say sorry there aren't the funds available at these rates for you to RR anything!!!

Yowser! Explained like that RR is akin to the lifeboat to passenger ratio on the Titanic. I hadn't thought it through to that degree, but you're right.
Question is: should I stand by one of the lifeboats dressed as a woman or child or should I head for the bar and hope we don't hit an iceberg (or small island)?

The sasparillas are on me  

[Jeremy Edwards]

Proving whether Zopa is a Ponzi or not is an interesting question.

From my point of view, it's easy as I am a borrower and a lender at the moment! I've done Rapid Return in a small way and I've posted stuff to the fora and to Zopa. A bit like the Turing test, I have had intelligent responses, which don't appear to be artificial.

I could be a fool or a stooge though.