No. of Recommendations: 6
5% interest rates are normal...
Only to those who BORROW money. Then they PAY maximum 5%.
Investors want 20+%. Ask ANY high-wealth investment fund.
It's always good to remember that the global weighted average cost to borrow money is, axiomatically, equal to the global weighted average interest earned on money. In general if you're not doing that well either borrowing or lending, it's likely because of cuts going to middlemen or (if borrowing) because you're less creditworthy than the global weighted average.
Admittedly a lot of borrowers are governments and they tend to get a better deal on average, meaning others get a worse deal borrowing on average, but the global identity holds true. And there is no middleman spread if you lend to a government.
Jim
