Do more research. I'm just pointing to one source for brevity of discussion, there are others.
The problem was how quickly rates went up (not necessarily how much they went up). It was like 5-6 times in 6 months, which spooked everyone. It peaked in 2000, then the unprofitable companies ran out of money when investors pulled out of the stock market, then rates went back down.
The problem was how quickly rates went up (not necessarily how much they went up). It was like 5-6 times in 6 months, which spooked everyone. It peaked in 2000, then the unprofitable companies ran out of money when investors pulled out of the stock market, then rates went back down.