3 ms·
I’m really amazed you thought that 7% yield from savings at a time of 0% interest rates was anything other than a fabrication On the one hand, I agree with thi
by geph2021 3y ago
I’m really amazed you thought that 7% yield from savings at a time of 0% interest rates was anything other than a fabrication
On the one hand, I agree with this: where was the 7% coming from?!
There's a basic level of skepticism that should have raised alarm bells for the "average" person.
On the other hand, this was an epic level of fraud. As an example, I was making ~8-10% off of peer-to-peer lending when rates were very low, done via very (seemingly) reputable lending platforms. Imagining if a SBF-level scammer was running one of these, and I very much feel for those that put trust in an overall system that generally doesn't have this scale of fraud.
- ska 3y agoThere doesn't even have to be a scammer involved. (Although is also clearly true that the entire ecosystem is a magnet for scammers) Any of these schemes had to involve a much higher risk than conventional investing. You can wave your hands as much as you want, but that doesn't hide the fact that there was (and still is) systemic risk that was by a) nature incredibly difficult to quantify and b) probably pretty high, given the returns. There is no free lunch.