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To make 20% per annum, we could lose our capital.
By A Singaporean Stockmarket Investor (ASSI)  •  June 24, 2015
The low interest rate environment has been going on forever in Singapore and many savers are frustrated. Some of them could end up putting their money in ventures they know little or nothing about to get higher yields.
 
Remember, unlike a commercial bank which assumes responsibility for our savings deposited with them, the middle man in the example above has no such responsibility. If a bank makes a bad loan decision, they have to bear the responsibility. The middle man in a crowd funding situation has no such responsibility. The risk is borne by the crowd (i.e. the lenders). It would, therefore, be interesting to know if the middle man is putting a meaningful amount of money where his mouth is or is he just interested in the commission the deal could generate for him. So, if it should be a bad loan decision, he would feel the pain too ......
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By A Singaporean Stockmarket Investor (ASSI)
Have a more secure financial future in an uncertain world by creating a stream of reliable passive income with high yields.
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