Carry Trade for the Common Man - Do Something Patriotic

I discussed the mechanics of carry trade in this post earlier in 2010: http://tedbits.blogspot.com/2010/02/some-carry-on-while-others-get-carried.html

The stock markets of most countries are going idle and brokers need to stimulate trading so they can earn commissions.  I heard a radio commercial today about borrowing on margin.

1. Let's say your broker will lend you 5X your collateral at 1%.  This was the interest rate advertised on the radio commercial!
2. So suppose you have $200, this allows you to borrow $1,000 @ 1%.
3. Use that $1,000 to buy some form a relatively safe and stable stock that yields 5% dividends (there are literally dozens to choose from).
4. Assume further that in a year, the price of that stock is the same price at which you bought it (no loss no gain).
5. You would make $50 on your $1,000 and still have the original $1,000.
6. Sell the stock and pay back the broker $1,010 dollars (principle + interest) leaving $40 gain.
7. Set aside $20 of the $40 for taxes.
8. Keep $20 for yourself. ( I did some rounding here but you get the idea )

Sounds like a lot of work for $20.  But what if you multiplied all these numbers by 1,000,  now that gets interesting don't you think?

Plus you will have earned $20 per 1,000 for your politicians so that they can fund wars or give it to their friends.  How patriotic of you.

Can't muster up the collateral?  Get a bunch of friends to go in together.  People do it all the time for lottery tickets.  They only difference here is that your odds of winning are near 100%.

If you have a financial adviser and they have not suggested this to you, maybe you should print this out and discuss it with them.

Think if everyone in your country started doing this!  Millions of people!  The coffers of your governments would get filled with tax money and you would have money to spend on things to stimulate your economy and grow jobs.