Inflation is (modestly) 8.6%. The Fed will raise interest rates (if we're lucky) to 1%. The traditional equation says that interest rates should be 12% to stall inflation.

The problem is that nobody knows how many banks and lenders with CDO's and derivatives are teetering on failure. A sharp rise in interest rates would collapse the global economy – worse than in 2008. So, banks might pay 1% for loans. What are you paying? 6-8% for secured loans (house, car) and 18% for unsecured credit?

If you think the system is stacked against you, it is.