While the idea of person-to-person lending might seem like a novel one in countries with sophisticated banking systems, it's actually the oldest form of credit extension.Long before there were banks, there were individuals with cash savings who would lend it to those who needed it, in exchange for the promise of repayment with interest.A lot of the media attention on the practice, also called micro-lending, has been focused on developing countries.But Prosper.com, a San Francisco-based startup with a high-powered group of investors, is focusing on a market closer to its home.The company is using an auction style marketplace to connect individual lenders and borrowers over the Internet for loans ranging from $50 to $25,000. In November, Prosper announced that it ... [Read more]