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Double your money in 4.6 years -- invest in Iceland. Iceland's central bank just lowered interest rates to 15.5% from 17%. Using the rule of 72's (which says that if you take the number 72 and divide it by the interest rate, it will tell you how many years it takes to double your money), it will take 4.6 years to double your money. So $100,000 becomes $200,000 in 4.6 years.
Iceland received a $10 billion bailout last year from the International Monetary Fund on the condition that it would raise interest rates to stabilize the country. Iceland's government also imposed policies to control local currency sales and capital flight, forcing Iceland exporters to repatriate foreign currency.
Governor Sven Harald Oygard believes that such moves, if left in place for the next six months, will stabilize the country and provide a new confidence to invest in Iceland. Nevertheless, the IMF has forecast that the economy of Iceland will contract by 10.5% this year.
Now, if you believe that Iceland will regain a stable economy and are something of a risk taker, you might just consider investing in Iceland. After all, you could double your money in a little over 4 years.
Would you invest in Iceland?
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Reader Comments (Page 1 of 1)
4-09-2009 @ 11:36AM
James Fowlkes said...
Anyplace that can produce a talent such as Bjork and offer double digit interest rates can't be all that bad. I say go for it. but only with 2-5% of your net worth. Consider it an aggressive investment.
4-09-2009 @ 11:45AM
Beltway Greg said...
Seriously, yes. to paraphrase the old Bob Dylan tune, "you/it ain't goin' no where." As the world goes so goes Iceland.
On the lighter side. Definitely yes.
A. If they provide the Blue Lagoon as collateral.
and
B. If they throw in some of those honeys and that Black Death vodka!
As I said before I'm not a PC.
4-09-2009 @ 1:07PM
milton359 said...
Do I need to remind the writer of this article that this is exactly what so many people did do. When the credit markets froze the banking system was completely unable to give depositors their money back, thus forcing the nationalization of ALL the major banks by the government. This IMF loan is suppose to help the government give depositors (mostly from the UK) their money back.
The yield looks good but the inflation & economic risk is pretty severe.
4-10-2009 @ 3:27PM
honest said...
And here they go, trying to repeat history right away! They need to run another world scheme to recover from Octover 2008 bankrupcy. What's the new name, Ice pyramud?