Replies to post #7470 on Invesco QQQ Trust Series 1 (QQQ)

[fourdint]

I totally agree a return to historical average interest rates will take down the every government in the world. Haven't looked recently but high was 20+% and average was 9%. The US doesn't pull it enough taxes to pay the interest on national debt if it gets that high. But, the feds know that so can't happen.

Adjusting interest rates is few tools the fed has to throttle the economy and control inflation. Thus, not being able to raise interest affects the ability to control inflation.

I understand that well. But private and public borrowing is two different animals. Some companies today pay an excess of 10% on their bonds/notes which doesn't come from fed. That is not to say fed funding doesn't play a role in money supply or cheap money cuz it certainly does, but is not sole source. I'm saying a .25 increase doesn't impact the stock market cuz it's private equities.