What happens when interest rates rise?

Less loans

>>1482410
Costs me more to borrow stock.

>>1482410
Government gets fucked. What they will do is keep interest rates so low for so long that the next crash will be devastating when it eventually happens.

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>>1482410
2008 2.0

>>1482420
What this anon is trying to say is "B-BUY GOLD AND SILVER!".

>>1482410
High interest rates = cost of borrowing rises = people take out less auto loans and mortgages = economy slows down

Low interest rates = cost of borrowing falls = people and businesses take out more loans = more economic growth

>>1482416
lol k

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>>1482480
>economy is shit
>interest rates have been near zero for the past decade

negative interest rates here we come

>>1482480
Low interest rates
>inflation and peoples savings become worth jack shit
>everyone in debt
>economy slows down
>only thing moving is the housing bubble
>banks burning but "saved" by the government

High interest rates
>loans more expensive, prices on housing drops, debt decreases, savings matter
>people dare buy stuff they don't really need
>can afford a home and even pay back the loan
>strong dollar
>economy grows

Two can play this game

>>1482480
Hi Yellen

>>1483139
>people dare buy stuff they don't need

Are you saying that people will have more money during a high interest rate environment?

Quality thread, btw. Good going op.

>>1482420
this is misinfo

>>1482480
>he thinks interest rates are the policy tool we need - this time it will work, for sure!

>>1483139
could you elaborate on your High interest rate points

>>1482410
People who are highly geared without cash reserves to service the loan either take a loss or go broke.
On a large scale, lots of mortgagee sales can effect housing to such a degree the LVR gets shifted meaning the home owner may have to top up the mortgage with a cash payment in a short amount of time or risk foreclosure.

>>1483139
the opposite of what textbook teaches you.
but this is what happens

>>1483178
i would say yes. less debt = more money.
and saving will be encouraged

>>1482410
since nobody here mentioned its all relative to the natural rate of interest in the economy ill assume u are all retards

>>1483139
except there is no significant inflation today

everything else I fully agree kek, what irony.

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>>1483139
Stinulative monetary policy, is by definition, stimulative.

>>1484143
>What happens when interest rates rise?
>its all relative to the natural rate of interest in the economy

That's not really a definitive answer.

>>1484143
The natural rate of interest is zero in our monetary system.

>>1485515
probably cause there isnt a definitive answer?

Stock market goes up