Lets take a look at Cheap Money, What Is Cheap Money?

What this episode covers

Cheap money is a loan or credit with a low interest rate or the setting of low interest rates by a central bank like the Federal Reserve. Cheap money is money that can be borrowed with a very low interest rate or price for borrowing. Cheap money is good for borrowers, but bad for investors, who will see the same low interest rates on investments like savings accounts , money market funds , CDs, and bonds. Cheap money can potentially have detrimental economic consequences as borrowers take on excessive leverage if the borrower is eventually unable to pay all of the loans back.

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