Consider that the market is no longer the 90%. Since real wages have not risen much since ~1980 [1], most of the consumers have no response when rates suddenly

Consider that the market is no longer the 90%. Since real wages have not risen much since ~1980 [1], most of the consumers have no response when rates suddenly increase. Houses are simply not purchasable. Case study: Vancouver, BC, Canada (I looked in May 2023). House prices: ~$1.1M. Loan rate: ~5%. Month payment: $5900. Yearly: $71k. Avg Salary: 60k (before tax). Result: No normal worker can afford the loan, and the bank won't give you the loan. When interest rates sharply rise, suddenly all loans to normal humans based on existing prices look like failure, because there is no way to make the payments. "I'll give you a loan, so you can miss payments every month, owe me more every year, and then default. No." if( money_earned < monthly_payment) then { no_loan } Also, wealthy need somewhere to park their money. A bunch of really wealth folks made a bunch of enormous profits last year. [2] Frankly, if you're in the $10^9 club, there's not much to buy. Personal air craft carrier? Your own airforce? Build your own town? [3] Reconstruct all of Iraq? [4] [1] https://files.epi.org/2013/ib388-figurea.jpg https://files.epi.org/2013/ib388-figurea.jpg [2] https://www.reuters.com/business/energy/big-oil-doubles-profits-blockbuster-2022-2023-02-08/ https://www.reuters.com/business/energy/big-oil-doubles-prof... [3] https://thehill.com/homenews/state-watch/4184337-california-forever-company-behind-land-purchases-near-travis-air-force-base-launches-website-details-plans/ https://thehill.com/homenews/state-watch/4184337-california-... [4] https://www.google.com/search?client=firefox-b-1-d&q=reconstruction+budget+for+iraq https://www.google.com/search?client=firefox-b-1-d&q=reconst...