Rising Rates Cast Shadow Over Economy as Recession Fears Loom

Higher interest rates are taking a cumulative toll on the U.S. economy, including consumers and commercial real estate. Something may soon "break" and trigger a recession.

Interest costs to service U.S. debt have surged over 125% since 2019 to over $800B. This is not sustainable long-term.

Rate hikes have pushed housing affordability to all-time lows. A $500k home now costs $1400 more per month than in 2020/2021.

Massive government spending is powering GDP growth but adding trillions in debt. This can't continue indefinitely.

The author predicts a 20%+ pullback in the S&P 500 to around 3700 in the next year as higher rates cause an economic contraction.