> Plenty of institutional investors are cash rich and they do very well with high interest rates

That's the point. They shift their investment into Treasuries instead of buying up land and turbines and power and GPUs. Also, as the rate goes up it gets harder to make the math math. So e.g. large construction projects get paused, et cetera.

That might be the case, but those large construction projects being paused means someone losing their job. We're literally paying people to make people unemployed.

> those large construction projects being paused means someone losing their job

Sometimes. Sometimes it shuffles them to other work, often less resource-intensive work. There is a lot of latent demand for construction.

We have precedence for supply shocks being cooled by rate hikes without causing an unemployment spike.