How to Make a Billion Dollars -Fast

This is a humorous piece by Henry Blodget. But it's also funny because it's true. Sort of consistent with a post I made a year or so ago about it being a great time to start a brand new "bank".

STEP 1: Form a bank.

STEP 2: Round up a bunch of unemployed friends to be "bankers."

STEP 3: Raise $1 billion of equity. (This is the only tricky step. And it's not that tricky. See below.*)

STEP 4: Borrow $9 billion from the Fed at an annual cost of 0.25%.

STEP 5: Buy $10 billion of 30-year Treasuries paying 4.45%

STEP 6: Sit back and watch the cash flow in.