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Interest rates gambling
#1
Can I gamble on the differences between the rate of a loan in one country (example 3%) and the interest rate gained from a deposit in another country (example 8%)?
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#2
it's possible, many people used to do that in the past, but you have to organize your work step by step otherwise you will not succeed
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#3
never do that. You have to understand that if a country has a high interest rate, its economy is very weak. So consequently depositing big amounts is dangerous.
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#4
about a decade ago, the interest rates in Mexico offered 25-30% a year. So Americans decided to gamble on it. But one reform in the financial sector changed everything and the interest rates went down! Think about it.
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#5
what you can do now is gamble on the weak dollar. Many European companies which concluded contracts with American companies now benefit a lot from the poor rate of dollar.
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#6
yes, also many eastern European governments which concluded agreements with Russian gas and oil suppliers received a lot of income due to the weak dollar. It will keep depreciating until the US elections are finished.
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#7
Japan is considered to be the country which gives loans at the lowest interest rate, that's less than 1%. But, the problem is that it's very difficult to obtain a loan in Japan.
If a kid asks where rain comes from, I think a cute thing to tell him is "God is crying." And if he asks why God is crying, another cute thing to tell him is "Probably because of something you did."

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#8
Read about how gamblers win in New York as interest rates go up.
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#9
that's nice, but we're not in New York. In poor countries it is more difficult to do that.
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#10
there are countries now which offer about 30% on deposit interest rates in local currency. So, you can deposit it, and take loans in dollars. The risk is that those currencies are not stable.
“Love is like a booger. You keep picking at it until you get it, then wonder what to do with it.”
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#11
Well this story is old enough since currencies like the Mexican Peso started to make unexpected moves. But till then, traders around the world were doing this and making quite a profit, as the peso was depreciating in a continue rate.
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#12
is there now a country that is in a similar situation Mexico was those times?
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#13
If there were we would be knowing that.
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#14
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