Eileen's picks

Eileen,
Stay away from the egg-nog, I think it's been 'tampered' with - same goes for the Punch.

Don L. Ferk

PS - the gingerbread house has a Step-up Mortgage and a Balloon payment. Don't go There, either.

Hi Don,

Not too much egg nog; I just didn't do a good job of explaining social lending. Here are better sources:

http://www.techcrunch.com/2006/02/05/prosper-launches-social-lending/

http://www.onlinebankingreport.com/subscriptions/issue.html?iid=164&gclid=CN7I-IjXv5ACFQUsPAodBDFxXQ

I'm interested in the Zopa idea because it's like development banking on a personal level: a person starting a small business, for example, can be financed by a number of regular people who buy CDs and voluntarily contribute a portion of the interest they could receive to the person starting the business as a way of helping them.

Personally I really like that concept. It's not charity, it's not taking a risk because the CD is insured, and it's an opportunity to help someone get ahead.

I'd be willing to give 2% of the interest I might receive back to a borrower whose reason for needing the loan interested me.

Eileen,
I know you are a good-hearted peron and mean well. Please consider the parable of the sowing of seeds. Seed that falls on poor soil does not prosper and grow. The truly deserving poor that you wish to help are trapped in places where seed finds little purchase. Countries with severe social and political problems. Sometimes their governments get there power from the barrel of a gun. kleptocracies, corruption, civil war, ethnic strife, etc.
Many of these places have received billions in direct Aid or loans by the World Bank and aid from international relief organizations to no avail. A particular example of this is Zimbabwe which received massive amounts of grain to feed starving people, the government sold this grain to equip it's army and pay do-nothing-for-the-people bureaucrats. The money does not filter down to the people most in need.
This attempt to support people individually can only succeed in a politically stable, free-market and Rule of law environment.

Also, I'm reminded of the weaver, Silas Marner, who was impoverished when capital-intensive technologically advanced factories were built that were far more efficient. The days of 'cottage industry' ended in the 18th century.
What is needed is investment in infrastructure, capital formation and investment to develop a productive economy and work-force - also education. Clean water and sanitation and medical availabiliy are the main problems. High up on the list is also social organization - child labor laws - to get money in some countries people sell their children into debt slavery as a common practice.

I think there are better ways to help people than another one of those " adopt a child " programs where you send money for a child monthly and the child writes you thank letters.

The use of intermediaries for eelymosanary 'helping' is an ineficient way to go ( most end in scandal and waste,fraud and abuse )
I know many people who joined the Peace Corp to do exactly what you propose - many are bitter about their experiences - nice people / bad government was the problem.

If you want something done - go there and get it done yourself. Sending a CARE package normally feeds and enriches only the thieves.

I know this sounds 'political'. Maybe I'm more of a Cynic than I imagined. All I know is that I could probably throw a rock right from where I am and hit a desperate person - far, far closer to home. My money goes to the Salvation Army to feed and clothe the poor in the town I live in.
Remember, Jesus only helped the people he had direct contact with or in the case of the centurion's faith maybe one step removed.

Eileen, the world IS too much with us,
Sincerely,
Don L. Ferk