This is just an instance the carry trade[0]. Borrow at a lower rate and lend at a higher rate. Works great until an event causes it to reverse and it all falls

This is just an instance the carry trade[0]. Borrow at a lower rate and lend at a higher rate. Works great until an event causes it to reverse and it all falls apart in a liquidity crisis. Then come the bailouts. [0] https://en.wikipedia.org/wiki/Carry_(investment) https://en.wikipedia.org/wiki/Carry_(investment)