There is a free lunch ... if you are a billionaire

 Just a short rant.  The stock market dropped about 15% over the last year.  The bond market dropped almost 40% in 2022.  Real estate has dropped about 10% since its high in mid-2022.

What if I told you that I had an investment that was guaranteed to earn you 5% per year, with absolutely no risk on your part.  Ok its not sexy, but a solid 5% year after year.  Would you be interested?  Do I have your attention?  Drum roll please ...

It's called a "reverse repo" which is short for "Reverse Repurchase Agreement".  If you are a mutual fund manager or hedge fund manager and you can't find good investments, or you own a bank and you are having trouble finding solid customers to lend to, all you have to do is call up the New York Fed and lend them the cash.  It's a little complicated to explain but not that complicated.  The Fed owns lots of government bonds.  You would buy a bond from them and they would agree to buy it back in the future, with interest, with no risk on your part.  It's essentially a secured loan - you lend them cash and they give you the bond to hold onto until they redeem it.  It's like you own a pawn shop and they are pawning you their junk (bonds) to get cash.  I probably didn't explain it properly, read this:  FAQs: Reverse Repurchase Agreement Operations .

Question:  why would the Fed do this?  They certainly don't need the cash.  The answer is because they feel sorry for you, you broke little rich kid and since you are part of the old boys club, they are helping you out.  Next question: how can they afford to do this?  Simple - they just print the cash out of thin air.  But doesn't this cause inflation?  Yes, but who cares, inflation is for the little people.  What does this have to do with capitalism?  Absolutely nothing.  It's crony capitalism, where the government absorbs all the risk.  It's perverted and corrupt and sick.  Bankers are scum.  

But .. you say I don't care if its sick and perverted, I want a piece of the action.  Tough luck, its a small club and you ain't in it.  The "minimum proposition size is $1 million,  and propositions must be submitted in increments of $1 million".  It's a rigged game.  The rich get richer and everyone else suffers the consequences.