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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.

(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.

Nathaniel Whittemore

NLW is an independent strategy and communications consultant for leading crypto companies as well as host of The Breakdown – the fastest-growing podcast in crypto. Whittemore has been a VC with Learn Capital, was on the founding team of Change.org, and founded a program design center at his alma mater Northwestern University that helped inspire the largest donation in the school’s history.

Nathaniel Whittemore