Card Prices During Recessions

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Originally Posted by Exhibitman

But interest rates are an oddly focused brick to the head. They hit factored industries, housing and construction very hard, don't affect the information businesses much unless they have variable loans or bonds, which is rare. :

It seems like this summary is missing the broader business impact, because real estate isn’t the only industry under fire.

Headline from yesterday’s WSJ:

“Raising money on Wall Street is hardest in a decade”

If the layoffs and/or hiring freezes at many of the tech startups and even established tech shops are any indication, the impact of higher rates spreads deeper than just leveraged companies with variable loans and bonds.

Rising rates means that the cost of capital for just about every business is higher than it was a year ago.

I suspect that we are closer to the top than to the bottom. How much further we have to go before we hit the bottom is where most of the debate seems to lie.