Post
Topic
Board Trading Discussion
Re: Putting your money where Pirate's mouth is.
by
myrkul
on 10/07/2012, 22:54:09 UTC
Why is it so hard for people to believe that loans can be made for 1% per day or even much higher ?

www.wonga.com

They say they 'only' charge 1% a day so 'only' 365% per year but the govt makes them display the APR (compounded interest); a whopping 4214% per year

A company offering loans is totally different than someone asking for loans. Obviously, their profit is limited by the number of borrowers they can find (it doesn't scale with the amount of capital they have). Which is another sign that pirates a ponzi: there are lots of lenders but no borrowers. If there are no borrowers, nobody is paying the interest..

No *visible* borrowers. Absence of evidence is not evidence of absence.