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Can someone explain what is meant when people talk about "increased interest rates" and "no more free money"? (hexbear.net)

submitted 7 months ago by [email protected] to c/[email protected]

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Pretty much title. I've seen this talked about a lot but I only very vaguely know what all this means, could someone elaborate on what happened, why it happened and what the consequences of it are?

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[–] [email protected] 13 points 7 months ago

If I borrow $1,000,000 at 0% interest at 3% inflation and put it in an inflation-proof investment (like housing), in 30 years it would be worth $2.5 mil. The 'real' interest rate is negative, it's free money.