The Relationship Between Price and Demand

When the rate of interest goes up, people think, ah, the return to savings has gone up. Second mechanism is what they call the wealth effect associated with housing stalls. People's perception of their wealth changes and whether they have enough wealth to spend or buy an extra think changes. In the United States, because they're much more involved in stock markets than we are, Americans have these 401Ks that they've raised themselves. So if you can do a taxi, because you're an Uber in America, the guy will talk to you about his shorts on Tesla.