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Opinion

An Unintended Consequence of Low Interest Rates? The Big Get Bigger

As companies have to shift their business model to contend with low interest rates, the largest find themselves in a comparatively better situation.

By Nathaniel Whittemore
AccessTimeIconAug 25, 2020 at 7:00 p.m. UTC
Updated Sep 14, 2021 at 9:47 a.m. UTC
AccessTimeIconAug 25, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:47 a.m. UTC
(IconicBestiary/Getty Images)
(IconicBestiary/Getty Images)
AccessTimeIconAug 25, 2020 at 7:00 p.m. UTCUpdated Sep 14, 2021 at 9:47 a.m. UTC

As companies have to shift their business model to contend with low interest rates, the largest find themselves in a comparatively better situation.

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This episode is sponsored by Crypto.com, Bitstamp and Nexo.io.

Today’s episode of The Breakdown is an extended edition of the Brief.

NLW discusses:

  • The “COVID-19 vaccine trade” on Wall Street kicks markets higher
  • The latest on TikTok vs. the U.S. and what it means for the U.S.-China relationship
  • More companies move reserves from cash to bitcoin

The final topic today looks at news that some large money market funds are shifting fees from users and taking the financial hit themselves. This creates a dynamic where only the largest companies can survive long term, and reflects a key unintended consequence of low interest rates.

See also: What’s Actually Happening With Inflation Right Now

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