I can borrow money for 5% no problem, buy 10000 Steem on some exchange and transfer it to my account. Why would I borrow at 28.6%? It doesn't make sense and it is irrational. Even people with bad credit can borrow at 22%. I'm trying to wrap my head around it, but it doesn't make sense to me.

If money isn't flowing into Steem when there is 26% guaranteed returns, then it spells trouble. I don't care about SP, RC, JSONs, Games, etc. We are talking about money here, it's fungible and convertable. This is a liquid currency that isn't attracting enough long-term buyers so the internal interest rate has sky-rocketed beyond common sense.

Just saying, it doesn't bode well.