Arbitrage at last!

Achim Duebel sent an interesting nugget in the form of this advertisement from Citibank in Germany. Those of you who read German can see the evidence here, where financial engineering meets the New Paradigm (remember the New Paradigm – from the bubble before last?).

Those of you who never learnt to sing “Die Lorelei”, will have to take it on faith that the ad says:

  • Loans for 3.99%
  • Deposits for 5.15%.

“But Heinrich, you are making a loss on every euro invested in your bank. ”

“Sure do, but just look at the turnover!”

As Achim put it: we must already be in paradise …

Maverecon: Willem Buiter

Willem Buiter's blog ran until December 2009. This blog is no longer active but it remains open as an archive.

Professor of European Political Economy, London School of Economics and Political Science; former chief economist of the EBRD, former external member of the MPC; adviser to international organisations, governments, central banks and private financial institutions.

Willem Buiter's website