Thoughts On Prosper

So Prosper is down while they are registering with the SEC. I've been wondering if it's such a great investment now with the economy being what it is. Since people are experiencing tougher times right now, it seems as though defaults on loans would increase. And Prosper loans are unsecured, so lenders are taking on quite a bit of risk. I guess the only way to decrease that risk is to diversify by making many smaller loans to different individuals.

I only have 5 Prosper loans out and haven't had anyone default so far. Has anyone else had that experience and have some insight into the concerns that probably many people have?