I've recently become aware of the existence of the Lending Club which appears to be a peer-to-peer framework for borrowers and lenders. I find myself intrigued by the interest rates claimed, but most of what I've found in my own research indicates that these interest rate computations involve a lot of convenient assumptions. Also, apparently if the Lending Club itself goes bankrupt, there is no expectation that you will get your investment back.

It seems at least conceivable that the interest rates are actually that high, since it is a new, weird type of investment, and thus underexposed relative to the market at large.

I was wondering if anyone more monetarily savvy than me could look into this, or warn me to stop wasting my time, if called for.