I would say a lot about this, but Alex Tabarrok does it much better, and I encourage you to go read what he says. The key bit:
Has childhood freedom been lost? No. Childhood freedom hasn’t been “lost,” it has been taken away by parents.
Has childhood freedom been lost? No. Childhood freedom hasn’t been “lost,” it has been taken away by parents.
And they claim returns for me, the lender, of around 10 percent.
By putting lenders directly in touch with borrowers—rather than through the banking system—person-to-person lending sites claim that they can cut down on overhead costs, thereby making it cheaper to lend to people with poor credit.