Can somebody explain to me why a piddling little raise in interest rates sows so much panic in the economy?
Most of the national corporations operate  on hefty mark ups, so why would an extra one or two percent in the cost of borrowing hurt them that much. Back  in the 1980's the interest rate got close to  20% and they still managed to churn stuff out.
I was recently on a trip to China where a shoe manufacturer told me that he only gets paid around $15 by western importers  for a pair of shoes ( and that includes his shipping) Then those same shoes are in the stores for anywhere between $125- and $250   ... more for dress shoes. He does this and still manages to keep his factory running  and pay his staff.
 Even when  retailers put their goods on sale at 50% off, they're making fabulous money and the same story must be extrapolated to other industries. So why can't they absorb an increase of a percentage or two without throwing themselves out of  their corporate hi-rise windows?