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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.

Updated Sep 14, 2021, 9:47 a.m. Published Aug 25, 2020, 7:00 p.m.
(IconicBestiary/Getty Images)
(IconicBestiary/Getty Images)

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.comBitstamp 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

For more episodes and free early access before our regular 3 p.m. Eastern time releases, subscribe with Apple Podcasts, Spotify, Pocketcasts, Google Podcasts, Castbox, Stitcher, RadioPublica, iHeartRadio or RSS.

Note: The views expressed in this column are those of the author and do not necessarily reflect those of CoinDesk, Inc. or its owners and affiliates.

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