Monday, May 22, 2006

Microlending Online

Salon story on a site where you can sign up to borrow and lend money to peers, cutting out the credit card company middleman. Back to the days of personal trust and a handshake?

"Looking at it from 10,000 feet, this is a great idea," says Elizabeth Warren, a professor at Harvard Law School who's an expert on bankruptcy law. "It could have the wonderful effect of making markets work the way they should, driving down the amounts charged for loans to the true marginal cost."

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