As do I.
Do you remember the term "Bond Vigilantes" aka "Bond Ghouls"?
These were terms that described investors in the long term bond market. They demanded those extremely high interest rates to buy bonds. Rates for mortgages were tied to the "Long Bond", or 30 year Treasuries, and, at one point, mortgage rates were around 19-20%. This situation strangled the housing market and the economy in general.
Paul Volker was Chairman of the Fed at that time. He raised short term rates as well, putting further pressure on the economy.
It was a great time for savers.
It was a terrible time for just about everyone else.
Why did the "Bond Vigilantes" and the Fed Chairman do these things?
To fight inflation.
Every situation is different, but if inflation returns, be aware that these are the tools that the Fed and the bond market have used in the past, and may employ in the future.
I do remember that we actually took an ARM home loan with a 3 year reset because of those high rates though they weren’t like they were during this collapse, back then every aspect of your life and credit was thoroughly investigated in order to get a loan.
I know they can use those tools in fact I wish they would use those tools lol I’m a saver and could earn some pretty good money but that’s a personal perspective overall I also know how it is harder for the younger people.
Now though we have Bernanke who it would appear his only interest lies in propping up the stock market and the Feds member banks. The Fed. also changed the accounting rules recently and with Banana Ben monetizing our debt things may be quite different.
Had he done so, the banks would not have collapsed, investors would have not lost most of their retirements and created the panic it did.
The damage that this idiot has done is way beyond mere corrections by raising interest rates. Keynesian economics has been implemented in levels never before seen in human history. The ensuing mess this has created is beyond comprehension. There is now no simple tactic or strategy known to man that can fix this now..........
I don't expect this administration to do anything to dampen inflation. Our best hope for some relief is for the House of Representatives and the state and local governments to reduce spending and begin dealing with this excessive public sector debt. On the federal level, I suspect we'll hang on for a wild ride and work hard to elect fiscal conservatives. A fiscally conservative administration may well push up interest rates a la Volker. Of course, investors (e.g. China) may not be content with current low interest rates, given rising inflation and continued deficit spending by the US. If investors demand higher interest rates, what then? Borrow more from China to pay for it? We're over our heads in red ink at these interest rates. How are we going to deal with higher rates? Difficult questions.