the government cant continue to prop things up artificially much longer. they will learn they have to let the cards fall where they may so we can have a stronger foundation. Prices in all asset classes have gone up enromously out of whack thanks to the easy lending and debt the consumers have taken on. consumers are now addicted and the government is just fueling the addiction
"How are Americans going to refinance their homes, pay their auto loans and credit card loans off if yields move higher???"
I love Dollar bears. Many sound like they were born yesterday.
If a homeowner can't refi at 7%, then they probably can't at 5%. Auto loans? LOC money can be found anywhere under 2.5%. You mean a "jump" to 3.5 or gasp, 4% for LOC money is onerous? As far as credit cards, the fed funds rate could go up 400bps and not affect rates at all. There is so much gouging going on in that market that the only parties affected would be the slimeball lenders. Besides, credit worthy consumers (you know, the ones that dont default) pay their bills on time anyway, so it doesnt matter what cc rates are.