Quote:
Originally Posted by L-Pink
Guaranteed, no risk returns?
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Sure CD's and T-bills are guaranteed returns, but the rate of return is very small to make any real money with them you have to have a ton of cash up front, but if you have millions you buy t-bills and make free money.
There is actually a nice little loophole that some of the big investment banks use. They can borrow money directly from the fed at a rate that is lower than the rate of return for t-bills. So they borrow from the treasury, buy t-bills then when the t-bills mature they pay back the fed and presto, instant free money. of course we the average person do't have access to this.