Andreas42

stocks go down. gas cheaper. we import more stuff and have to borrow more to finance it. not bad really as long as we keep expanding our economy.

argument can be made that there is a flight into safe assets which is why USD is strengthening, QE2 ending should have the opposite affect (rates should go up). then again higher rates will attract more USD investors seeking higher yields so that goes the other way.

Andreas42

Yeah, higher real yields will be good for USD, which will in turn make imports a bit less expensive. That may turn out to be good on a number of levels for economic growth both here and abroad. But gas will still be high in absolute levels, and those who currently hold long-term Treasury debt will be hurt as rates rise.