[simpleman]

Lets look at the biggest interest rate crisis in history, ie 1980

Paul Volker was Fed Chairman in 1979 during Jimmy Carter's final year before Ronald Reagan succeeded as  President. Volker began raising interest rates to tame runaway inflation that had peaked at nearly 15% by March 1980. To beat inflation Volker raised rates to an all time high of 20% by June 1981, throwing America into a very deep recession unseen since the great depression on the 1930s. The mood was sombre and the masses swore they would never get to buy a house again.

But by Aug 1982 as the inflation monster was finally defeated, the stock market started to soar. By 1984, the mood was jubilant and Reagan was reelected.

In 1980, Dow was between 800 to 1000 points. By 1985, it topped 1500 and by 1990, reached nearly 3000. The bull run continued for another 10 years to reach a whopping 15,000 before bursting.

What could be happening now is that the Dems are preparing for Nov 2024 to battle a resurgent Trump, and tolerating some pain for now. But not too much to the extent riots break out on the streets where Biden has to activate the National Guards across America.