Originally Posted by
brooklynmatt
I disagree. It is a perfectly valid thread. Some people have not thought of this, and some people refuse to accept it as a possibility. The concept of Kiva is good, the implementation of Kiva is good enough (though I would hope would get better) and the risks of Kiva are real, they aren't too big to fail, and they could be set up as a Ponzi, with poor returns masked by additional investment.
It's worth keeping a level head on things, and that is a bipartisan thing.
Actually as I watch the thread grow, I am changing my mind. The Kiva defenders now have another forum to spread the word.
Now Kiva is not all goodness. To reach so many areas it relies on field partners who have their own agendas, some religious some otherwise. The field partners advance the loans (pre-fund) and often charge what seems to be high interest rates (but look at their rates of return on assets). Kiva loans are really a way of buying the principal component of already funded loans. They replenish the capital of the filed partner and give it a risk free (IF THE LOAN GETS FUNDED) return.
That said, Kiva is very honest about how its model works. The extra capital source expands the reach of the field partners. The field partners do more than make loans, the seek out, educate and mentor borrowers most of whom have no other sources for credit.
Of my many Kiva loans, only one (Less than 00.2%) has defaulted. I plan to stay active through Kiva and urge that you do likewise.