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Comment by oooyay

This is a very layman's understanding, so take it with a grain of salt.

If you have a ton of cash on hand when markets go to shit and interest rates go through the roof you suddenly have something no one else does: cash on hand that was traded when that dollar was worth less. When you buy property or stock with that money, you've effectively bought it at a hefty discount. When the markets and interest rates normalize again you stand to make huge gains.

They lock up financing to put a cap on growing inflation, but that same cap stops people from taking advantage of the market and thereby continuing inflation through a new avenue.

parent oooyay 2 years ago

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