To: DannyTN
It is not necessarily ordained that they go higher at this point.Well, when you put a pot of water on the stove, and turn the burner on high, it's theoretically possible that the water will freeze instead of boil. But's it's not likely.
25 posted on
10/18/2003 3:08:19 PM PDT by
sourcery
(Moderator bites can be very nasty!)
To: sourcery
"Well, when you put a pot of water on the stove, and turn the burner on high, it's theoretically possible that the water will freeze instead of boil. But's it's not likely"LOL, Well the economy is improving although it's questionable yet how much. That certainly argues for higher rates.
But what is happening on the monetary side? And adequately growing money supply will keep rates low despite the economic growth. I'm asking. I haven't looked at the monetary figures in a couple of years.
27 posted on
10/18/2003 3:11:43 PM PDT by
DannyTN
(Note left on my door by a pack of neighborhood dogs.)
To: sourcery
I think many are missing the point of the article, including the author.
The last 2-3 years the US manufacturing economy has taken a dive as have many other sectors. We have avoided a really bad recession though because of rates being driven down.
The low rates have:
A) Allowed many to lower their mortgage payments, with the savings being spent on consumer goods, keeping the economy afloat.
B) Increased employment in the banking and financial services sector through the sheer number and velocity of transactions (both residential and corporate finance)
C)Allowed many to build or construct (or build something bigger) since the low rates made projects more affordable. This has kept the construction industry busy.
The low rates have been good medicine, but now the effect is starting to wear out. Something else has to pick up in the economy, as we lose the benefits of A, B, and C above.
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson