12%+ CD Rates

User Forum Topic
Submitted by poway_seller on February 3, 2009 - 12:01pm

I'm only passing this on. I would personally NEVER invest in this, but thought it might spark some conversation on the forum.

http://www.capitalbankmexico.com/cdrates...

Submitted by PadreBrian on February 3, 2009 - 12:36pm.

Fake "bank" scam.

Don't even bother posting junk like that.

Submitted by donaldduckmoore on February 9, 2009 - 4:20pm.

Don't even think about it.

Submitted by just someone on February 9, 2009 - 5:20pm.

You need to understand that the peso is taking a beating. It's gone from 12 to 14 pesos to the USD in a couple of months.

Submitted by NeetaT on February 9, 2009 - 6:38pm.

There is nothing wrong with this investment. It is a user friendly form of hard-money lending. They lend at 15%-20% to people who have collateral worth 125% of the loan and pay the investor 12%. I did this for one year with a firm located in the US. It was scary at first, but it turned out well. Maybe I was playing roulette and didn't know it.

Submitted by PadreBrian on February 9, 2009 - 8:51pm.

:rofl:

Submitted by shvatcs1 on May 23, 2009 - 9:04pm.

I thought I would give this a try. I invested 5000.00 USD. The interest is paid in USD and there is no Peso exchange. It has nothing to do with the Peso or the value thereof. I received every bit of my money back plus the 12% interest for the 90 day CD. When you wire the money, just be sure to send it in USD not Pesos. I will invest in another CD with Capital Bank Mexico with more money and for a longer term. A foreign account is always a bit frightening, but this is for real.
JV

Submitted by PadreBrian on May 23, 2009 - 10:20pm.

lol! Nice try.

Submitted by patb on May 23, 2009 - 10:33pm.

PadreBrian wrote:
lol! Nice try.

It's a Madoff scam.

12% magically....

Submitted by qwerty007 on May 24, 2009 - 8:15am.

It's interesting they couldn't get the company name in the URL. High interest rates in foreign bank accounts are not unusual ...but in US$s? It sounds feasible, but not exactly a traditional banking model and the saying that springs to mind is "Only fools go where angles fear to tread". The blurb on currency is incomprehensible. I wonder what debt enforcement methods they apply :) Nicely put together site though.

Submitted by sunny88 on May 24, 2009 - 11:26am.

It's too good to be true...

Submitted by patientrenter on May 25, 2009 - 11:18am.

NeetaT wrote:
There is nothing wrong with this investment. It is a user friendly form of hard-money lending. They lend at 15%-20% to people who have collateral worth 125% of the loan and pay the investor 12%. I did this for one year with a firm located in the US. It was scary at first, but it turned out well. Maybe I was playing roulette and didn't know it.

NeetaT, you scare me. You are risk-averse, but do things like this. It seems you are only comfortable taking high levels of risk when:

1. The promised rewards are high - high enough that common sense tells us there has to be high risk

2. The actual risks are concealed from you

I sure hope you don't end up losing most of your money one day.

Submitted by davelj on May 25, 2009 - 2:27pm.

patientrenter wrote:
NeetaT wrote:
There is nothing wrong with this investment. It is a user friendly form of hard-money lending. They lend at 15%-20% to people who have collateral worth 125% of the loan and pay the investor 12%. I did this for one year with a firm located in the US. It was scary at first, but it turned out well. Maybe I was playing roulette and didn't know it.

NeetaT, you scare me. You are risk-averse, but do things like this. It seems you are only comfortable taking high levels of risk when:

1. The promised rewards are high - high enough that common sense tells us there has to be high risk

2. The actual risks are concealed from you

I sure hope you don't end up losing most of your money one day.

The trick here is use of the Certificate of Deposit moniker for the security because people will automatically view it as an alternative to a US CD. While it is technically a CD, it's really just a short-term investment in the junkiest of foreign junk bonds. Sure, you might actually get paid back - I don't think this company is a scam or pyramid scheme in the traditional sense. But the borrowers they are funding are extremely high risk and there's probably a very small margin of error in the portfolio. The important thing is not to think of this as a CD, but rather an equity-like debt instrument in a developing country, with a return that may or may not reflect its true risk. Personally, I wouldn't touch this thing with a ten foot pole.

Submitted by PadreBrian on May 25, 2009 - 3:41pm.

Can someone help me out? I have to help a prince out in africa. He said I could keep 1/2 the money if I just help him by sending an african bank some money to free up the larger amount of money. He swears he will even knight me! Though, I would put in a good word for you as well!!