Can someone please convince me why it is a good idea to take a loan at 30% interest (or higher) than taking the same loan at 3% interest (or lower) to invest?
Because thats exactly whats happening with financing the Hinkley Nuclear Power Plant deal in the United Kingdom. http://ift.tt/2rYB8iS http://ift.tt/2tzCwG0
Rather than issue risk-free gilts/bonds at record interest rates to collect the funds, the UK Government is instead preferring to take foreign loans from state-owned companies in France and China to finance this deal, possibly at much greater costs of interest and risk.
I'm hoping someone more knowledgeable than me can chime in their thoughts on why this is a very sound investment decision with a large margin of safety that would make even Warren Buffet jealous.
Thanks.
Submitted June 23, 2017 at 07:00AM by asji4 http://ift.tt/2tBsdB4
