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Never mind that individuals can't lend other people's money on a fractional-reserve basis. Once you factor that in, the P2P lender is at a huge disadvantage.
by redblacktree 11y ago
Never mind that individuals can't lend other people's money on a fractional-reserve basis. Once you factor that in, the P2P lender is at a huge disadvantage.
- HiLo 11y agoCan you elaborate? This isn't necessarily true.
- redblacktree 11y agoI have to actually have cash in order to lend it to someone, right? A bank can lend out more cash than it actually has (since this cash is the depositors', and they could not return all depositors cash if they asked for it all at once, having lent 90% of it out) How could an individual operate similarly?