Earlier than the 2008 monetary disaster, one among my neighbors took out a home-equity mortgage from Wachovia, paying round 5%. Wachovia by no means despatched an appraiser to the home, however that isn’t the weirdest a part of the story. My neighbor requested his monetary adviser what to do with the cash left after he’d paid some bills. The adviser advised a cash supervisor who assured 12% returns, explaining “you’re borrowing at 5% and getting paid 12%—you’d be silly not to do that.”
Supply: Live Mint