The P2P Lending Boom——America’s Next Ponzi

In “Presenting The $77 Billion P2P Bubble” we took a close look at the P2P lending market which is expanding exponentially amid Wall Street’s efforts to securitize the loans on the way to creating a market for P2P-backed ABS. As a reminder, P2P lending allows borrowers laboring under high-interest credit card debt to essentially refi via loans from individual lenders, thus transforming credit card debt into unsecured personal loans. As we noted, this only works if borrowers do not subsequently max out the credit cards they just paid off: Consider also that P2P loans create the conditions whereby borrowers can refi high-interest debt via personal loans, transferring credit risk from large financial institutions to private lenders in the process. It’s not entirely clear what the implications of that shift might ultimately be, especially if the market continues to grow rapidly, but one thing is clear: using a relatively low-interest P2P loan to pay off a high-interest credit card is no different in principle than using a new credit card that comes with a teaser rate to pay off an old credit card. The borrower will very often max out the old card again and thus end up with twice the original amount of debt.  We were also quick to remark that as long as investors are buying the P2P-backed ABS, demand for the loans will only grow, causing lenders to lower underwriting standards in a repeat of the dynamic that led to the housing crisis: It’s not difficult to imagine a scenario where this spins out of control as borrowers refi multiple credit cards with multiple P2P loans, only to run up still more credit card debt. Voracious demand for P2P-backed ABS will provide an incentive for P2P companies to ignore signs of trouble as they profit from providing the loans that feedOriginally appeared at: http://davidstockmanscontracorner.com/the-p2p-lending-boom-americas-next-ponzi/The P2P Lending Boom——America’s Next Ponzi is a story from: BitcoinWarrior.net

The P2P Lending Boom——America’s Next Ponzi is a story from: BitcoinWarrior.net

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David Whiteing of CBA Says Digital Currency Tech is where the future of …

Cryptocurrency Trading News: Bitcoin in Bear-Trap By Yashu Gola May 31, 9:32 BST Originally appeared at: http://www.forexminute.com/bitcoin/david-whiteing-of-cba-says-digital-currency-tech-is-where-the-future-of-payments-is-heading-59374David Whiteing of CBA Says Digital Currency Tech is where the future of … is a story from: BitcoinWarrior.net

David Whiteing of CBA Says Digital Currency Tech is where the future of … is a story from: BitcoinWarrior.net

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Blaming Bitcoin for Aiding Terrorism, Money Laundering and Drug Trafficking …

A technology has two aspects — good and bad. The aspects however are not integrated within the functions of a technology; but instead, it is implied by its operator — the man — which decides whether to utilize an innovation for a good or bad purpose. Bitcoin somewhere has fallen between these two distinctive flocks: one, which is trying to utilize its technology for making banking easier, faster and cheaper; the other, which is abusing it for all notorious crimes that hold the power to destabilize order. Speaking particular about the latter, criminals indeed have found an accessible companion to feed their empire of terrorism, money laundering, drug trafficking and various other illicit activities. Some Surveys, Opinions Just a few months back, Chartered Accountants and PwC conducted a survey to understand the strong demand of disrupting technologies in the future. It derided that over 23% of accounting and finance professionals found money laundering and terrorism to be the biggest roadblocks for Bitcoin. In the same survey, it was told that over 67% of the 10,000 participators believed Bitcoin to be used widely in the next 10 years — perhaps by a majority of criminals as well. Regulators have therefore found it troubling to compute laws that could be well-fitted with Bitcoin’s technological traits. Just a month ago, a meeting held between government officials and digital currency entrepreneurs thoroughly raised this issue. There the regulators believed that companies will play a major role while combating Bitcoin-related risks, with FinCEN head Jennifer Shasky Calvery adding that: “When I put my financial intelligence unit hat on and we’re trying to trace funds of criminal and other illicit actors, the reporting that we’re getting from some of the bitcoin exchangers isOriginally appeared at: http://www.newsbtc.com/2015/05/31/blaming-bitcoin-for-aiding-terrorism-money-laundering-and-drug-trafficking-oped/Blaming Bitcoin for Aiding Terrorism, Money Laundering and Drug Trafficking … is a story from: BitcoinWarrior.net

Blaming Bitcoin for Aiding Terrorism, Money Laundering and Drug Trafficking … is a story from: BitcoinWarrior.net

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Cryptocurrency Trading News: Bitcoin in Bear-Trap

Cryptocurrency Trading News: Bitcoin in Bear-Trap By Yashu Gola May 31, 9:32 BST Originally appeared at: http://www.forexminute.com/technical-analysis-reports/cryptocurrency-trading-news-bitcoin-in-bear-trap-59378Cryptocurrency Trading News: Bitcoin in Bear-Trap is a story from: BitcoinWarrior.net

Cryptocurrency Trading News: Bitcoin in Bear-Trap is a story from: BitcoinWarrior.net

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What’s Pumping The Stock Bubble——$4.2 Trillion In Corporate Bond Issuance In Last 3 Years

In its 84th Annual Report released last June, the Bank for International Settlements departed from usual central bankish conventions and decried the growing departure from market discipline and even reality. The BIS even used the loaded term “euphoric” to describe what it saw as risk market prices no longer affected by fundamental economic conditions. As the Financial Times noted then, The BIS, the bank for central banks, has been a longstanding sceptic about the benefits of ultra-stimulative monetary and fiscal policies and its latest intervention reflects mounting concern that the rebound in capital markets and real estate is built on fragile foundations. That does seem to be the case as credit and funding markets in “dollars” are bearing out over time. Dating back to November 2013, these more basic markets are as disenthralled with the monetary state of affairs as the BIS. That leaves the question as to who, exactly, is so “euphoric?” Typically, bubble thoughts uncover biases against the standard idea of “dumb money.” It is believed to be the retail herd that causes both the bubble and its dastardly end. It is difficult to disprove that alone, especially recognizing the overabundance most recently of retail trading and imbalance there: A broad look at the 6.5 million customer accounts at TD Ameritrade indicates that retail investors are “pretty fully invested” in stocks, the online brokerage’s CEO said Thursday.   Fred Tomczyk cited several signs of this: margin loans at high levels, client cash at low levels and account holders at the firm logging in frequently. While Mr. Tomczyk indicated that such behavior was “a good indication”, recent history isn’t as charitable. Even if we set aside any doubts about dumb money/retail, it surely isn’t the case that that was where the stock imbalance was built. Retail investors really did not reengage untilOriginally appeared at: http://davidstockmanscontracorner.com/whats-pumping-the-stock-bubble-4-2-trillion-in-corporate-bond-issuance-in-last-3-years/What’s Pumping The Stock Bubble——$4.2 Trillion In Corporate Bond Issuance In Last 3 Years is a story from: BitcoinWarrior.net

What’s Pumping The Stock Bubble——$4.2 Trillion In Corporate Bond Issuance In Last 3 Years is a story from: BitcoinWarrior.net

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Bitcoin struggles for legitimacy

Can bitcoin go straight? The crypto-currency advertises itself as an easy way to do financial transactions online. But it’s mostly been synonymous with crime. On Friday afternoon, Silk Road founder Ross Ulbricht was sentenced to life in prison. Silk Road was a bitcoin-based online bazaar for drugs, weapons and other illicit wares. A few months after Silk Road’s 2013 collapse, nearly 750,000 bitcoins went missing from Mt. Gox, a Japan-based exchange. Many now suspect it was a heist by the exchange’s own management. There have been no comparable disasters since, but the damage was done. Bitcoin prices have steadily declined since their December 2013 peak of around $1,150, trading on Friday near $237. The problem? A simple lack of rules and regulations, according to a small but high-profile cadre of New York City-based bitcoiners. But a high-profile group of investors are hoping to change that. Most famous among New York’s bitcoin evangelists are Tyler and Cameron Winklevoss. They’re preparing to launch an FDIC-insured exchange called Gemini, which they have likened to a Nasdaq for bitcoin. “We believe that this will be the year of infrastructure for bitcoin,” Tyler Winklevoss told The Post. The Harvard-educated twins — who famously tangled with Mark Zuckerberg over who founded Facebook — believe that prospective investors “are sitting on the sidelines” in lieu of well-regulated “on-ramps” for bitcoin, he said. The Winklevosses have lately been joined in their regulatory zeal by Ben Lawksy, who this month announced he was stepping down as New York state’s top Wall Street watchdog to start a consulting firm for digital currency. Lawsky and Gemini hope to make bitcoin the byword of international trade and online stocks — not guns and fraud. Originally appeared at: http://nypost.com/2015/05/31/bitcoin-struggles-for-legitimacy/Bitcoin struggles for legitimacy is a story from: BitcoinWarrior.net

Bitcoin struggles for legitimacy is a story from: BitcoinWarrior.net

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The Future of Bitcoin Is Bright; Jesus Would Know

Roger Ver, Bitcoin’s first angel investor, spoke to a big crowd on May 29 at the Pioneers Festival at Hofburg Imperial Palace, Vienna, where he said that he believes it’s not too late to invest in Bitcoin. The festival is one Europe’s major conferences, drawing more than 1,600 startups from 90 countries. Ver gave a speech in which he described the fast growth of the digital currency realm. He said: “Just this year we’re seeing major financial institutions get involved in Bitcoin. A couple of years ago, this would have been unimaginable.” He also joked about his nickname: “Somehow I wound up with the nickname Bitcoin Jesus, so people expect me to know about everything, everywhere.” Then he blessed the crowd with satoshis.  I just gave away $125 worth of bitcoin to various audience members at #Pioneers15 http://t.co/0GzKiUKOlU pic.twitter.com/YudGcnJ1kM — Roger Ver (@rogerkver) May 29, 2015 Ver talked about mainstream investors getting onboard the Bitcoin ride, including Barry Silbert with his Bitcoin Investment Trust (BIT) on Wall Street, and NASDAQ with the testing of blockchain-based trading. The sizable number of startups and investors engaging in the digital currency environment will increase moral in Bitcoin, he said. More people will grow fond of Bitcoin in the future and its use will increase in all sectors, from online gambling, to buying goods and making remittances. Users from countries around the world will be able to transfer millions in wealth for very low fees. Businesses such as Amazon could benefit from adopting Bitcoin because the company spends around US$2.6 billion a year on credit card processing fees. If it switched, he pointed outOriginally appeared at: http://cointelegraph.com/news/114435/the-future-of-bitcoin-is-bright-jesus-would-knowThe Future of Bitcoin Is Bright; Jesus Would Know is a story from: BitcoinWarrior.net

The Future of Bitcoin Is Bright; Jesus Would Know is a story from: BitcoinWarrior.net

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Bitcoin’s $300 Million Rollout – Bitcoin is continuing to gather momentum

Love it, hate it or even know it, Bitcoin is continuing to gather momentum.  With over 100,000 bitcoin merchants since its conception and $300 million in transactions, Bitcoin is creeping up in some of the most unexpected places from North Korea to the Western Sahara. But what actually is Bitcoin?  Laura Andre Coin reporter tells us more. Well if you think as money as imaginary and its only because we believe its currency,  Bitcoin is kind of like that.  We pretend it is and we believe it is and so it becomes so. Bitcoin needs people to believe in like other currencies that exist.  However Bitcoin is not subject to political systems or government, that lead to economic crisis, but are people having a crisis of faith in bitcoin, perhaps not. As long as it is seen to mimic other real world resources like gold for example.  Albeit Bitcoin is used primarily as virtual money to buy and sell things online. It’s encrypted or as they say ‘crypto-currency’ which prevents it from being copied.  Every Bitcoin transaction is recorded using a block chain,  that information acts like a ledger that is encoded onto the Bitcoin itself,  this prevents people spending the same bitcoin more than once.  Essentially it’s just a number associated with an internet address.So whilst you can spend and exchange them, you can also mine them.  The more people that mine Bitcoins the less there are to be found.    However as there is no Bitcoin regulatory body,  it tends to fluctuate wildly.  Plus security should be kept in mind of course due to online hackers.  So it remains a high risk currency that is unpredictable. Whilst it seems to be growing in popularity from Pakistan to Siberia where there are outlets trading in Bitcoins, there will still be those thatOriginally appeared at: http://7thspace.com/headlines/509848/bitcoins_300_million_rollout___bitcoin_is_continuing_to_gather_momentum.htmlBitcoin’s $300 Million Rollout – Bitcoin is continuing to gather momentum is a story from: BitcoinWarrior.net

Bitcoin’s $300 Million Rollout – Bitcoin is continuing to gather momentum is a story from: BitcoinWarrior.net

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Weekly Round Up: AdultFriendFinder data sold for Bitcoin, ‘Dread Pirate Roberts’ gets life in prison and more

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Welcome to our latest weekly round up! Every Sunday 99Bitcoins gathers the most important news of the week in one article just for you. Simon Fraser University students can now buy textbooks with Bitcoin In an attempt to “get the students to talk about innovation and try Bitcoin,” the Canada-based Simon Fraser University (SFU) is now […]