5.20% CD terms 6mo to 10 years. too good to be true?

"Rewind circa 2000-2003"

Ever heard of "Past performance is not indicative of future results."?

 

Ever heard of " history repeats itself " ? Somethings in life never change specially human behavior.

 

B rated commercial bond perhaps. Nothing AAA rated yields that much.I would check that insurer.

 

Transfer funds to a foriegn bank account. Term deposit=CD.

8.8% in New Zealand

http://www.bnz.co.nz/Rates_and_Fees/1,1184,20-188-521-2502,FF.html

http://www.westpac.co.nz/



How about Iceland at 14.45%

http://www.landsbanki.is/english/aboutlandsbanki/funds-accounts/interestrate-tariff/

 

even some futures brokers pay interest like IB

 

Pretzel Logic!

I would love to tour the Southland
In a travelling minstrel show
Yes I'd love to tour the Southland
In a traveling minstrel show
Yes I'm dying to be a star and make them laugh
Sound just like a record on the phonograph
Those days are gone forever
Over a long time ago, oh yeah
I have never met Napoleon
But I plan to find the time
I have never met Napoleon
But I plan to find the time
'Cause he looks so fine upon that hill
They tell me he was lonely, he's lonely still
Those days are gone forever
Over a long time ago, oh yeah

I stepped up on the platform
The man gave me the news
He said, You must be joking son
Where did you get those shoes?
Where did you get those shoes?

Well, I've seen 'em on the TV, the movie show
They say the times are changing but I just don't know
These things are gone forever
Over a long time ago, oh yeah

 

Like 2003 we needed a WAR in Iraq to turn the market around (how completely sad) - so until you see the bombs dropping in Iran or some other victim, stay SHORT!!!!!!!!!!!!!!!!!!!!!!!!!!

The returns have been nothing SHORT of incredible!

 

The best yields right now are in municipal auction rate securities with high "default" (auction failure) rates. I am getting 4.5-10% tax free on insured paper that has underlying ratings of BBB or higher--most are AA. And the auctions on these are not failing because of the high default rates.

For example LA Mass transit Bonds auctioned at 4.49 last week--that's resellable every week so you have liquidity at par. that's the lowest one i have. Those are AA3 underlying.

 

The reason that these rate are so high is precisely because they are not easily resellable!! There is no free lunch. There are reports of firms being sued because they did not disclose the liquidity issues with these securities.

 

Wow, that's quite a bit higher than the 5.25% APR that I get from Credit Union on a jumbo. Do you happen to know if there are any Catch 22's on banking in Iceland? I knew of NZ and Austrailia is supposed to be high.

I have seen rates this high in Serbia and Ukraine, but neither are considered stable economically therefore, I would never consider it.