Hedge Funds Help Fill Gap

Even though the interest rate on the loan -- at 12% -- is nearly twice as much as a conventional-bank commercial mortgage, the developer took solace in the fact that he purchased the property at an attractive price and was able to close the deal fast. "For the flexibility, I can pay a bit more for the loan," he says.

12% mortgage rates! Talk about proof positive that the "normal" market rates are rigged...