Today is Apr 15th, the Tax day. The above photo make you wonder where your money is gone.

There are two things make me worried. One, we are very well into the phantom economy era. We don’t build anything concrete, we don’t manufacture cars any more. We are making our GDP by punching number in computers. Second, the one who screw up punching number, got rewarded by cleaning up this mess.

AIG paying out 100 billion to counter parties. That is not the money supported by real manufacturing activity. This is the number invented by two persons in front of computers. AIG can not afford to pay it themselves tells me AIG was taking over the money printing business from Fed.

In the time of credit crunch, nearly all banks shutdown lending and their credit card rate is still high enough over 18%. I guess they have not heard the news Fed has lowered the rate to near 1% now. I always don’t like banks since they are the one created this mess and they charge their customers way too much. Banks have been very reluctant to lend any money to small business, mortgage. But there is one new way for small business to get the loan, social lending. Today I am writing about Lending Club.

Lending Club is the new guy in the block, and they are gaining a lot of momentum. When you lend out money in Lending Club, you are actually investing there. Let me review some questions first.

Is this investment with good return? YES. There is a good market you can earn about 7%-15% from the fund you invested in Lending Club. This is very good rate in current market conditions. Of course, if you are a credit card company, you can charge 20%.

Is your money safe? Not 100%, but you are the make the decision who to lend to. This is what is so brilliant about social lending. When the borrower is not paying back, you can only blame yourself. Kidding aside. Here is how Lending Club protects you:

1. Every borrow FICO score is higher than 640. Also you got an overview the borrower’s credit file.
2. Every borrower’s account is reported to credit bureaus as it go, good or bad.
3. If a loan is late, Lending Club will actively pursue it.
4. If a loan goes sour, the account will be turned over to outside collectors.
5. In some cases, Lending Club will take direct legal action against borrower

To whom you invest the money? This is a tough question. I personally choose the one has a higher credit score and rent a place. This way I am sure they will not brought down by depressed housing value. Then I read their stories and feel the stories. If the story is convincing enough, and I feel connected enough, I will make s small investment there. In the end, that is good interest rate, beat my Amboy Direct.

Good Luck to you all if you actually sign up as a lender in Lending Club.