Reply #16: Not good

[NewJeffCT]

Not good for all of America, I mean. The dollar is at historic lows and because of our massive deficits - budget & trade - nobody wants to buy our dollars except China, whose currency is tied to the dollar... the only way around nobody wanting to buy dollars is to cause havoc with the markets by raising interest rates.

A rise will cause the housing market bubble to burst, or at least soften demand considerably. New construction will slow, as will refinancing and getting things like equity lines for home improvements. Imagine if you bought a $150,000 home early this year and put down 20%, leaving you with a $120,000 mortgage. If the market collapses, your home could be worth only $100,000 to $110,000 (more or less) So, if you wanted to sell your home or do some improvements, you now have negative equity in your home. You're stuck there in a home that is steadily getting older.