Yes, if you have to borrow at 7% it is not a business. Only at low rates it is. Now, relations with banks might help to cut those rates, to collaterallize loans with properties might help too, maybe not. I guess it depends on each individual investor and each bank.
If one has to collateralise loans I would say this is not the right time for such liabilities, not yet. In my opinion, the right time will be when inflation will be higher or much higher. Then, properties will help a lot not just with rates but to borrow at any rate. Peace and best wishes. Xi On 28 oct, 18:06, Justice <[email protected]> wrote: > My comment: > > I guess most people over here are into long term investments, and no > into short term investments. If so, do not read further. > > For short term and long term investments: > > 1) Farmland wih good water supply > 2) Produce food at home or elsewhere > 3) Commodities. > > What follows is just for short term investments. > > Japanese Yen has been along years the favourite currency for carry > trade. However, since interest rates in USA are close to zero and US > dollar seems headed to fall deeper and deeper as long as we can > foresee, US dollar has taken the place of the Yen. It maes easier for > Americans to enter into this business. > > For those of you that do not know it, it basics is simple. You borrow > in very cheap conditions a devaluating currency and inmediately > acquire high yield bonds (or something else) denominated in a > currency > that raises. Right now the favourite currency to acquire is the > Australian dollar, although NZ dollar is to ponder and watch too. > > Brief training > course.http://www.youtube.com/watch?v=kUSiahpanKohttp://www.youtube.com/watch?v=3UE5vbEHj64 > > I have no relation with that forex agency and I have no idea of its > reputation. I post it just because its explanation seems easy and in > good English. > > Why now?http://www.youtube.com/watch?v=Qs4WPwHCG1Q > > Also, I have no relation with that forex agency and I have no idea of > its reputation. I post it just because its explanation seems easy and > in good English. > > and what she predicted is now > happening.http://www.bloomberg.com/apps/news?pid=20601087&sid=a7RswDxmDg7o > > Just information for those who want to check with their favourite > broker. > > Peace and best wishes. > > Xi > > =========== > I brought this over from the other board. > > My comment: banks are borrowing at zero - and perhaps they are > purchasing baskets of currencies since it's such a good way of making > a return. > > But for everyday people the interest rate is about 7% (that would be > money taken from equity in a home). > > The only way this might work in the short term is to take money that > is in savings and only earning about 2% to make this purchase as a > hedge. > > Is that what you mean? --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [email protected] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
