In 1979 I bought my house and paid 18.5% interest rates, unemployment was in the double digits, gas prices had tripled and the doom and gloom crowd was predicting 1929 era depression.
Ronald Reagan got elected, lowered taxes, created jobs, destroyed the soviet union, and we had 20+ plus years of economic boom times.
Interest rates have been kept low by the fed, but zero or negative interest rates are against the laws of long term prosperity in a capitalist system.
Rising interest rates are not going to create a depression.
Do you think that 2021 is comparable to 1979, with Reagan coming in soon?
I sure don’t.
Rising interest rates will cause an overwhelming debt payment on the national debt.
https://www.treasurydirect.gov/govt/reports/ir/ir_expense.htm
Bad things happen when you have to borrow to make payments on debt. That’s why inflation is so useful.
Our first house mortgage was at 18.5, too. What we wouldn’t have given for it to be 3. People have it good today.
In 1979 with the biggest creditor nation in the world. Now we are the biggest debtor nation.
If HR 1 passes and becomes law there will never be a Ronald Reagan again.