A couple of ticks up in interest is going to suck all of the cash out of the economy.
This is going to get ugly fast. People will have no idea how their low rate interest card is all of a sudden at 19%.
>> A couple of ticks up in interest is going to suck all of the cash out of the economy <<
Nope. As interest rates go up, more funds will flow into the USA from foreign investors. That increased investment will add to the economic boom that’s already underway.
In the meantime, higher interest rates on credit cards will force many consumers to put less money into purchases they can’t afford, thereby increasing the overall rate of domestic saving — an effect that also will support increased investment in our booming economy.
In other words, it’s a win-win situation except maybe for irresponsible folks who run up credit card balances they can’t afford — plus those urban yuppies who buy overpriced houses by taking advantage of ridiculously low rates of mortgage interest