With the banks loaning money at low rates of 3-5% what's to stop entities with high levels of assets and credit from borrowing in order to make a higher return rate on investing?
As long as your investment increases at a rate that is higher than your borrowing costs, you can make money.
Many Hedge Funds have steady high profits like Soros Fund Management generated more than 22% or Tepper at 42% and Recovery Fund posted net returns of 63%, Paulson Enhanced funds returned 33% and the Advantage funds generated net returns north of 26%. These guys are making money hand over fist.
Though, Social Security won't be able to give poor old people who paid into the system all their careers enough to live in poverty, while the Stock Market keeps raking in hundreds of billions. Something's wrong with that picture.