That's right! Just looking at the last 5 years we see interest rates (on the 10 Year T-Bond) have climbed from 5% all the way up to 4.791% today.
We're obviously doomed.
i think hes right, interest rate swings in the past 6 years have been far too dramatic, thanks to the so called maestro mr greenspan. i dont know about a severe recession, but the bill is coming due for ALL households with higher rates, fuel costs, and reduced wealth effects!!
Newtons Third Law as applied to economics. Still seems to hold true.
That's right! Just looking at the last 5 years we see interest rates (on the 10 Year T-Bond) have climbed from 5% all the way up to 4.791% today.
We're obviously doomed.
I will agree when people stop going to Starbucks and ordering $3 to $4 cups of coffee everyday.
Gas and commodity prices keep increasing and so does Starbucks stock. These are the items that go first when wallets are being pinched. $15 to $20 a week is a half a tank of gas.
There are "wealth effects" associated with higher interest rates themselves, assuming your assets are allocated in a manner to benefit from them.