interest rate rise, page-4

its still cheap interest rates, and whats it matter anyway interest rates could be 15% again or more before this is over.

if the initial loss of subprime has done this, what will the next 3.5years of subprime losses do? there is still a lot more money to be lost its only the first people signed up into subprime who have defaulted from the honey moon period ending and their interest rates going to the proper ammount, there is still 3.5 years worth of honey moon periods to expire

with the extra cost of debt this will create, the banks will be forced to on charge their new costs..

Watch this kill the housing market in australia too, US is at a 10 year low in house prices now, what would 10%+ interest rates do in australia. people will be forced to sell their investment properties and their homes, no one will have the buying power anymore to pay the same stupidly high prices, and we know what happens when there is big supply desperate to sell and no one buying, people are going to lose money everywhere hand over fist.

If interest rates are hurting you at this low rate, than sorry but its your own fault for over borrowing what you can not afford, a mortgage lasts 20 years, in the last 20 years interest rates were 17.5% if your borrowing at the lowest its been in the cycle than your a fool for not making room in your budget for when the rates go back up again.

Interest rates is just the tip of the ice burg the next few years will get very ugly.