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August 23, 2012, 06:10:32 AM |
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One percent per day IS a hideously usurious interest rate, but it has so far it seems turned out to be do-able for over a year on a limited scale under certain circumstances.
Obviously whoever is paying such a rate is going to be trying hard to get refinanced at a better (meaning lower) rate, unless, maybe, operators of ponzi schemes have strategic or tactical reasons (such as marketing/propaganda) for staying at such a high rate.
So the trick is to figure out the right set of circumstances, situations in which someone actually can eventually pay and ideally will actually pay but is somehow unable to find a lower rate of interest.
I have been watching an actual empirical test, in which more than forty entities were given secured loans at 1% per day. I took about a year for refinancers to step in and start refinancing them at half a percent a day, and at time of writing not all of them have yet obtained such refinancing.
So far I have learned that although it is hard to find exactly the right debtors, thus that there is very much a limit on how much capital such high interest secured loans can absorb, if you can find or set up the right circumstances it is doable, at least for a year and a half or so so far.
What I expect to see happen though is that as more and more capital becomes aware of how secure such debt actually is, more and more of it will get refinanced at lower and lower interest rates.
-MarkM-
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