Interpreting interest rates linearly is a fallacy. As we have seen the asset markets have adapted to low rates by increasing assets prices. Thus an increase in

Interpreting interest rates linearly is a fallacy. As we have seen the asset markets have adapted to low rates by increasing assets prices. Thus an increase in interest rates to what historically has been low does not offer a great way to analyze its effect. The question we should rather answer is by how much the assets will lose in value and what are the options of people depending on this value (retirement, disability funds etc...) and for people indebted, did they forecast and are they able to stomach an increase in interest spending of roughly an order of magnitude?