Throw away all of your Forex trading dreams, trading schools promising big returns, and investment guru newsletters – there is now a real way to make 50% per year.

Greek Bonds.  

That’s right, you don’t need all of that junk, you can just loan money to the Greek government for two years at the exorbitant rate of 49.9%. Bloomberg sums up the important notes rather succinctly:

Greek bonds dropped, with 10-year yields climbing as much as 46 basis points to a euro-era record 19.78 percent, while two-year note yields added 215 basis points to 52.53 percent. The yield spread between Greek 10-year notes and similar- maturity German bunds widened to a euro-era high of 1,794 basis points, or 17.94 percentage points.

Now, there is just one little problem… The Greek government doesn’t have the money needed to pay you back, and will need a further bailout (and then probably a few more after that…) from the Euro Zone (or Chinese?) in order to make good on its debts.

But as compared to the unknown risks trading some other investment with the promise of 50%, these Greek yields look good. Instead of being scammed on an investment guru newsletter or automated forex trading system that works while you sleep – here is a cut and dry risk/reward scenario.  Greece gets bailouts for the next 2 years? You make 50% this year, and 50% the next.  Greece defaults? You lose some to all of your investment.

The ascent of Greek yields has been brutal. One look at 10 year Greek bond yields over the past month shows just how upward-bound things have been as of late, with some noting that the trajectory is similar to what was seen in Argentina in 2001 a month before they faced default.

[Source: Bloomberg]

 So yes, you could theoretically snap up some Greek bonds at these rates, and if things went your way, you’d be boasting some pretty impressive returns on your investment. But for us, risk is just as important as reward, and with the potential for Greek default seeming bigger by the minute, this is one risk we wouldn’t want to take. Would you? their respective subsidiaries, affiliates, officers or employees.