Do you often hear about and see other people protesting their passions in life by spending countless hours holding up clever signs, yelling, and screaming? All the while wondering if the rich bank executives care or even pay attention during their meetings? If you watch and read the news about the big banks that were too big to fail, you know there wasn’t anyone who went to jail over this. And you know that bonuses were paid out every year at the taxpayers’ expense, right?
So where does this leave us? Can a sane person conclude that spending hours of your week really makes a difference? Do you think the politicians who are receiving hundreds of thousands of dollars a year from the banking lobbyist care about you either? Admittedly, there are some out there that are more optimistic than myself, and they protested. Some of them called themselves the “Occupy” movement. And again you know that even the politicians you thought might care about the people, the ones who actively criticize other governments around the world for a lack of democracy; even they supported the SWAT teams that ransacked the camps of the “Occupy” movement.
Where does this leave us?
If only there was some way we could protest, the way that Adam Smith, the father of Capitalism believed it should happen. AND THERE IS. What if I told you there is a way to protest that directly takes profits away from the big banks? What if I told you there is a way to protest from the comfort of your own home? And what if I told you the way to protest actually makes you real money in the process? Would you be interested in having your voice heard and getting paid to do so? And most excitingly, Well Fargo recently announced their employees were banned from participating from this new industry because of a direct “conflict of interest.” (Translation: Well Fargo and other banks will lose profit if you participate.)
It is called “Peer to Peer Lending,” and you can make a real profit from it while taking money away from the big banks. Do you want to know more, continue reading and you too can make your voice heard in a meaningful way!
The technologies being developed in the world these days are creating environments where regular people can have the same access to profitable industries that in the past only the rich and powerful enjoyed. Peer to peer lending allows you and me access to people who want to borrow money and pay you back in real percentages. Think about that for just a moment. Banks literally make money in the economy because they are allowed to take your savings account and loan out a dollar of your money and make interest. But that is just the half of it — they take lots of dollars from your accounts and loan out those dollars to multiple parties at once. That is called leverage, and also what got banks into trouble several years ago. In other words, they loan out that one dollar to 10 or 20 people all at the same time. But one of the first aspects of peer-to-peer lending is they avoid leverage.
- Peer to peer lending only lends out 1 dollar for every 1 dollar available, no leverage.
Why is this important? When damage is done, it is less amplified. Meaning there is less risk to society with peer-to-peer lending. And this is the way societies use to work before banks existed. Neighbors, friends, and family would help each other out strengthening bonds in society and creating a stronger middle class. When banks were invented, they started stealing our earning potential away from regular people, concentrating the wealth in only a small percentage of the richest in society. It did make sense to do this because it created liquidity and helped society move forward faster. But that was before technology like the internet and computers could accomplish the same thing in a fraction of the time. A website where both borrowers and lenders can come together is convenient for everyone and streamlines the process.
Problem 1. Banks are not even paying us a respectable interest rate anymore.
I discovered Peer to Peer lending a couple of months ago when I wanted to start a savings account for my children’s education. The banks tried to bend me over a barrel. They wanted to charge me money to open a savings account, and remember, they earn money on my savings; what kind of crap is that? Why should we pay them money so they can make profit and not compensate us for it?
Imagine if your neighbor came over and asked if he could borrow your car to pick up his kids from school because his is in the shop. No big deal, right? But what if he then charged you $25 for him to borrow your car? No one would allow that. And yet that is exactly what the big banks are doing to us, they charge us money so they can make interest off our hard-earned dollars. And then the government takes our tax money, bails them out so they can keep their jobs and continue to nickel and dime us out of the middle class and into the poor house.
Problem 2. Banks charge us money so they can make profits and we don’t see any of the interest. Is that fair to you and I?
- Peer to Peer lending, you are the bank and you make money when you lend out your assets.
Let’s go back to the idea about protesting banks, their mismanagement, and the impact it had on the economy. What would have happened if I asked to speak to the manager of that bank and asked if they would not charge me money for a savings account? You might be laughing at this moment because we all know they wouldn’t give a darn. Would it be any different if I asked them to pay me interest on the money I give them to keep safe? No, they wouldn’t pay me anything significant for their privilege to make money off my assets.
Because of this, more and more people are skipping banks in order to open accounts with peer-to-peer lending sites, to both borrow money, and to lend their money out. We already know for a fact that Wells Fargo is forbidding their employees from making their own profits at these sites. And you know what is next, right? The big banks are going to pay our politicians to ban these sites because they don’t want their residual profit streams to go away. You might think we are a capitalist society, but the rich are protecting their monopolies with high barriers to entry. And if this is anything like what dirty energy has done with their monopolies, the banks will tell you that in order to keep you safe they can’t without charging you money.
And further, the banks will tell you that peer-to-peer lending sites are unsafe. In essence, they are going to do everything they can to try to keep you poor, they don’t want you to succeed, and they won’t start paying you a portion of their profits either. They might even pay 60 Minutes to do a negative story filled with half-truths and lack of context in an attempt to keep you ignorant on the reality of a changing marketplace. Peer-to-peer lending is a disruptive technology that helps you win while taking profits away from the rich. Just like investing in solar panels is a disruptive technology that makes you investment grade returns at the expense of government subsidized monopolies.
But you know what I am doing? I took my savings account money out of my bank and I am now earning between 8 and 12% whereas before I was going to have to pay the bank so that they could make a profit. There is saying, “If you want to be successful, do what other successful people do.” And you know what rich people do? They have multiple income streams. They don’t just earn money from paycheck to paycheck like too many middle and lower class people do. Instead, they also invest their money in stocks and mutual funds. And they invest in real estate, small businesses, or solar panels for their home. And what is also happening now — YOU CAN BE A BANK TOO! One of my favorite things to do is loan out my assets to people who make more money than I do via peer-to-peer lending. I cherish the idea that rich people are now working for me, because I AM A BANK! I typically loan out $25 at a time to people who are wealthier than myself, and they are paying me a premium for that. I am strengthening my position in the middle class by creating multiple income streams for myself. And while I am doing this, I am protesting by taking real profits away from banks that have no real interest in helping society rather than just themselves.
Why is this even important to talk about? Because too many rich people are hording opportunities for themselves at our expense. And we often are working so hard to just try to keep our heads above water that we don’t see what opportunities are out there to strengthen our financials. And lastly, too many people like the Koch brothers are secretly paying others to discredit real opportunities and to legislate laws keeping us from growing stronger so they can easily keep their residual incomes. That is what they are doing wrong. What we are doing wrong is not taking advantage of real opportunities like being your own bank, or being your own power company, or worse, not realizing what is and what isn’t propaganda meant to keep you down.
I don’t want to waste my time holding a sign, but I am glad some people do. What I want is for as many of us as possible to strengthen our incomes by taking opportunities like peer-to-peer lending and solar panels, understanding them, and embracing them. The stronger the middle class is, the better off our society is. We will have more jobs, stronger economies, governments for the people instead of corporations. Our founding fathers didn’t create the greatest country in the world to benefit mega corporations, so go out there and join a growing movement of people participating in their country’s future. Together, we are stronger! Think for yourself, and gather information and facts from credible sources.