[quote=The-Shoveler]
The only mass exit I think that could occur would be caused by some economic catastrophe and it would be the leveraged players being forced most likely.
[/quote]
I personally don’t think it would take a catastrophe to end up with some hedge fund players getting overleveraged and blowing up. The past 20 years have seen plenty of examples of this. Fed lowers rates, people borrow at those low rates, and speculate with the money. Since that speculation doesn’t create any real economic growth or a sustainable environment it always ends up blowing up sometime. The fed says we’ll lower rates so businesses can invest but it’s far easier to borrow and speculate than it is to actually build a real business.
[quote=The-Shoveler]
I don’t see interest rates spiking all of a sudden, I think it will be a very gradual affair Accompanied by equal or more inflation.
[/quote]
I tend to think interest rates will stay low for awhile here in the US. Longer than most people think, but when they do move higher I expect it to happen relatively quickly. At least faster than what it took to get to these low levels. I.e. it will be shorter to go from 3.5 to 6 than the roughly 4 years it took to go from 6 to 3.5
