[Pelham]

“In a recent development, the 10-Year Note Yield has surged to 4.45%, a level not seen since November 2007.”

So is the sky falling yet? These 10 Year rates are still much lower than every single year of the Reagan administration, the last time that the Fed was fighting an inflation rate similar to today. We managed to survive.

1981 . 13.92%
1982 . 13.01%
1983 . 11.10%
1984 . 12.46%
1985 . 10.62%
1986 . 7.67%
1987 . 8.39%
1988 . 8.85%

[unclebankster]

So is the sky falling yet? These 10 Year rates are still much lower than every single year of the Reagan administration, the last time that the Fed was fighting an inflation rate similar to today. We managed to survive.

1981 . 13.92%
1982 . 13.01%
1983 . 11.10%
1984 . 12.46%
1985 . 10.62%
1986 . 7.67%
1987 . 8.39%
1988 . 8.85%

*****************

We’ll survive, but people and businesses hooked on cheap money will have a hard learning curve.
It won’t be easy for them, but it has to happen in my opinion, or our currency will be weakened & eventually destroyed with current monetary practices.

Also, on the high interest rates from 1981-1988. From a demographic perspective.... Boomers were 17-24 years old on the low end & 35-42 years old on the high end.

IMO with their peak earning years still ahead of them, they could absorb the high interest rates & inflation. I’m not sure the younger generation will be able to handle the current accumulated asset inflation.

“Time Will Tell.”

[TomGuy]

So is the sky falling yet?

Too many became too used to cheap money of the last 15 years. The cheap money was really appreciated by the government, considering the massive bailouts from GWB and BO and the trillion-dollar spending from DJT and Bidenomics.

They need to figure out something, because Carter era level interest rates will devastate the economy.