Posted on 06/30/2004 11:19:20 AM PDT by RWR8189
Huh??
'splane it Ricky???
Since when do I have to answer questions not drawn from what I've written? Fact is, export industries have been greatly helped in the last year by the very favorable exchange rate with the euro. This has been one factor in the recovery which will diminish with time as the dollar strengthens.
In an election year it should read:
INTEREST RATES INCREASE 25% IN ONE DAY! BUSH ECONOMY TO BLAME!
I agree to an extent. I don't think inflation will get out of control.
All else being equal, more goods and services allow more choice for consumers, plus given a constant money supply there is less money to pay for them.
The market and banks absorbed this non event a month ago.
Well....that's life.
If Span eventually drives commercial mortgage rates up past 7-7.5%, it will stop folks like me. I'm guessing this will push 5 year balloons on 15-20 year AMs up to around 5.5-6%
Wasn't Greenspan raising the FOMC during 92 and W the elder's election run as well?
IIRC he was criticized in 1992 for not cutting rates aggressively enough.
yep....I develop car washes, warehouses, self storage et al.
I'll miss these rates. I can't raise my prices to compensate very quickly until real inflation has set in a while plus I hate to expand on old mortgages with new less desirable rates.
I'm ambivalent on Al...Volker was more my boy.
WE'RE ALL DOOOOOOOOOOOOOMED!!!!!
< /DNC talking points>
Cats don't like baths.
$20,000 loan, 5%, 5 years = $377.42 monthly payment
$20,000 loan, 5.25%, 5 years = $379.72 monthly payment
Huh??
'splane it Ricky???
Inflation means the growth of money (what THAT is is a LOT more complicated than your question!) faster than the growth of goods and services. Hiking the interest rate reduces the growth of money (it costs more to lend, which creates money (!))
A growing economy increases the growth of goods and services, sometimes faster than the growth of money. That's what's deflationary, since more goods and services than money cause deflation, which is the increase in the value of money.
Clear now, Lucy?
It would be nice if they would go WAY up...
At least for those who save money it would be nice...
Actually, moonman cleared things up for me when he said "all else being equal". I had originally thought he was suggesting that during our period of economic growth (since the Clinton recession) we were going to have growth and deflation.
I've never know that to happen except during some very short term lag period of the business cycle.
Well done. It was the economy growing fast and the continued rate hikes in the late 90's that led to the deflationary recession in 2000-2002. I have been concerned with the growth of money reflected in gold though. Price seems a tad high for me but it is not continuing to grow..which is good.
That is exactly what happened in the late 90's which led to the Clinton/Greenspan recession of the early 2000's.
The only net deflation I think we had in the past 100 years was during the Great Depression. The main cause of that was bankruptcies and bank failures, which destroy money.
The only business cycle I've ever seen is an effect caused by changes in government policy.
That is exactly what happened in the late 90's which led to the Clinton/Greenspan recession of the early 2000's.
What are you saying here..that we DID have growth and deflation?
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