This could either be the next big thing, or a failed experiment

Prosper.com is a new website/company that has gotten a fair amount of press for it's person to person lending model. First off, I think the idea is terrific. Let people looking for a lower rate loan meet people looking for higher rate of return on their savings and reap a small percentage from the exchange. It's a win, win, win, and disintermediation at its finest. Will it work? The idea, definitely. This particular version of the idea? I think so, if things go well from the start. A couple of deadbeats early on could quash the confidence of on the fence lenders. I will be keeping a close eye on this and may even try it if I come across some loose change.