**Summary:**
In this video, Task discusses the relationship between rising interest rates and the stock market. Historically, an increase in interest rates has coincided with a rising stock market due to improving economic conditions. However, Task points out that the high levels of debt in the current economy could lead to a different outcome this time around. He suggests that rising interest rates might actually reverse economic growth by increasing the burden of debt servicing, particularly affecting sectors like real estate. Task emphasizes the importance of considering unprecedented debt levels when analyzing the potential impact of rising interest rates on the economy and the stock market.

**Detailed Analysis:**
Task starts by addressing a question from Discord related to a previous video about interest rates and their impact on the market and the economy. He acknowledges the historical correlation between rising interest rates and an increasing stock market, attributing this to improving economic activity leading to higher levels of borrowing. Task explains that historically, economic expansion has been associated with both rising interest rates and a flourishing stock market.

However, Task introduces a different perspective for the current economic scenario, emphasizing the significant levels of debt present. He expresses concerns that the current debt levels could lead to a situation where rising interest rates might actually hinder economic growth instead of supporting it. Task explains that as interest rates increase, the amount of money required to service existing debt also rises, potentially diverting resources away from productive uses and causing economic contraction.

Task specifically highlights the real estate sector as a key player in the economy and explains how rising interest rates could negatively impact it. He mentions that real estate thrives on lower interest rates, and an increase in mortgage rates could lead to reduced affordability, potentially causing a slowdown in the housing market.

Additionally, Task mentions the Federal Reserve's role in managing interest rates and acknowledges their efforts to influence the economy through bond purchases. He points out the limitations the Fed faces in controlling long-term interest rates compared to short-term rates. Task discusses the uncertainties surrounding the Fed's ability to effectively manage interest rates in the face of market dynamics.

In conclusion, Task highlights the disconnect between the stock market and the economy, suggesting that despite rising interest rates having the potential to stifle economic growth, the stock market might still perform well. He encourages viewers to remain cautious and consider the complexities of the current economic landscape when assessing the possible impacts of rising interest rates on the market.

Some people love their debt, so far I have managed to stay debt free

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@cmmemes/re-taskmaster4450le-6gss1y)

Congratulations @taskmaster4450le! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :

<table><tr><td><img src="https://images.hive.blog/60x70/http://hivebuzz.me/@taskmaster4450le/comments.png?202103221546"></td><td>You made more than 14000 comments.<br>Your next target is to reach 15000 comments.</td></tr>
</table>

<sub>_You can view your badges on [your board](https://hivebuzz.me/@taskmaster4450le) and compare yourself to others in the [Ranking](https://hivebuzz.me/ranking)_</sub>
<sub>_If you no longer want to receive notifications, reply to this comment with the word_ `STOP`</sub>

Yea the economic indicators don't exactly match. It depends on a lot of factors and I doubt the actual economy is going to affect the situation in the stock market. I personally think the stock market is essentially going to be propped up no matter what happens. The reason why? Because too many of the rich people will be affected by a collapse in prices and the politicians/feds care more about them than us.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@jfang003/re-taskmaster4450le-4rvihs)

Interest rates lead to a recovery in the market because it leads to attract more customers, but in the long run it is very bad

Take the financial crisis that occurred in 2009 as an example, when most banks lowered interest rates and started a new economic policy.

<center>![pixresteemer_incognito_angel_mini.png](https://files.peakd.com/file/peakd-hive/pixresteemer/8h7BBw1w-pixresteemer_incognito_angel_mini.png)</center><center>Bang, I did it again... I just rehived your post!</center><center>Week 49 of my [contest](/hive-179017/@pixresteemer/the-re-hive-contest-results-week-48-and-start-week-49) just started...you can now check the winners of the previous week!</center><center><sub>6</sub></center>

If I've understood correctly, a central bank can set a cap to the yield of bonds regardless of any maturity by simply buying them off the market. This is called Yield Curve Control and has been done by the Bank of Japan in recent years when it bought 10-year bonds to keep the interest rates on them to the floor. The Fed did it during WW II and a few years after the war to keep the burden or servicing the war debt manageable.

What would be the problem with doing that now? Inflation expectations are or at least should be low because of the relentless downward trend in costs due to automation and because of the fragile state of the economy.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@reonarudo/re-taskmaster4450le-wvutb)

@taskmaster4450le something urgent needs to be done about the debt to ensure that it does not cause another global economy failure...

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@yimmily/re-taskmaster4450le-41buw1)