Comment by ntkachov

"They" being the Federal Reserve, who's mandate is to balance unemployment and inflation. So yes, Cars, homes and everything else in the Fed's basket of goods needs to stop going up by 6%/mo. The Fed is limited in their toolset, so in order to do that they can raise the federal funds rate basically causing any loans given to have a minimum APR (Why lend to Jack for 5%, when Uncle Sam will give you 6%). So if you're taking out a loan, your payments are going to be more expensive. Thats going to nuke lower return investments and make borrowing to grow your business harder.