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Technology Stocks : CSCO - where's the bottom?!?!? Bear Thread
CSCO 77.42+4.6%Nov 13 3:59 PM EST

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To: Monty Lenard who wrote (14)11/11/2000 8:23:16 AM
From: Monty Lenard  Read Replies (1) of 253
 
In looking at the tracks of interest rates in the Great Depression, you can see a steady widening of the gap between safe interest rates on government securities and the interest rates that borrowing companies had to pay. Even though credit was ample--in the sense that borrowers with perfect and unimpaired collateral could obtain loans at extremely low interest rates--the businesses in the economy (few of which had perfect and unimpaired collateral) found it next to impossible to obtain capital to finance investment.
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