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Banks aren't going to stop loaning money because of higher interest rates. They're going to loan more money. We will see another economic expansion...

Followed by....
As rates go up, loans become more expensive for borrowers; fewer are able to afford them.
From the borrower perspective, the loan (especially as inflation makes things more expensive) becames more difficult to afford. From the lender perspective, the potential borrower becomes less likely to pay the loan back.
Banks won't stop lending; that is their business. But they will by necessity have to scrutinize borrowers more carefully, decline more, and lend less to those they approve.
Not quite what you said above.
hippyjoe1955 · 61-69, M
So among your other failures is your failure to understand economics. Were you around when interest rates were at 20% and people were walking away from their houses because they couldn't afford the payments?
@hippyjoe1955 The last great recession was primarily caused by the housing bubble. Interest rates are still very low - no where near 20%. Mortgage rates are still under 5%. Banks are eager to lend money right now.
hippyjoe1955 · 61-69, M
@RocktheHouse 2008 was not a very great recession. The only reason it lasted at all was government policy. Much like the dirty 30s? Same thing. Government is usually the problem and rarely the solution. Don't forget the housing bubble was created by Clinton's policies. Bush never fixed the errors and Obama was able to use the blip as an excuse to cripple the US economy.
MasterLee · 56-60, M
Usury abounds
Unlearn · 41-45, M
Who will take those loans?
@Unlearn The same folks who are buying those overpriced homes. Consumers aren't going to stop borrowing money. The average American Credit card debt is currently increasing.

 
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