Pretty much everyone knows that if you so desire to borrow money, that there is going to be a corresponding cost to the borrowing of that money, depending upon the amount so requested, as well as your credit worthiness, your status, your business acumen, and your legitimate need for such. In western nations, the basic cost for such borrowing of money, is charged through an interest rate, usually stated on an annual basis. So then, when interest rates so being charged to the consumer and businesses are super low, this thereby makes the decision to borrow money for those borrowers a heck of a lot different, then when such a cost, including inflation, is more along the historic norm or even higher than such. in fact, super low interest rates, can effectively be so low, that the actual cost to the borrower, in the consideration that money now is almost always worth more than money later, can be for all practical purposes, negligible or even favorable for that borrower.
The above signifies, that super low interest rates, are by their structure, going to have winners and losers, which will be materially different than when those interest rates are more in accordance with historic norms. By far, the biggest loser, of super low interest rates, are those that are net savers; for their ability to make interest on their monetary assets, has been slashed so low, that they effectively aren’t making any money at all, and in all probability, when taking into account inflation, are essentially losing money on an annual basis. The biggest winners, are going to be those that borrow money when those interest rates are super low, whether needed or not, in order to invest into what they so believe to be enterprises that will provide them with a superior return to the cost of the money so being borrowed, or to invest in their own business, in order to expand such, or for basic sound speculation purposes. In other words, when interest rates are super low, the hurdle to make money for those that are willing to take on some degree of risk, is going to be a lot lower, then when those interest rates are higher. This thus signifies, that super low interest rates, especially when such exists for a considerable period of time, is almost for a certainty, going to increase the speculative interest of people and businesses; thereby, signifying that when those super low interest rates, cease to exist, there is going to be a reckoning which could readily be destabilizing to the economy, in whole.
After all, people and businesses are forever trying to look for a bargain; and super low interest rates are the type of thing that certainly looks like a bargain; of which, it could be said, that this is true, as long as those super low interest rates remain in existence. The problem though lies in the fact that super low interest rates, are typically in existence because of some serious systemic problem with the underlying economic system or its activity, so of, which necessitates those very low rates; and of which, this is not meant to be the natural order of things, so that, at some point something has to give and when that pivot so happens, those that are not so fleet of foot, may well find that something that looked to be too good to be true, really was.