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Politics : PRESIDENT GEORGE W. BUSH
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To: Nadine Carroll who wrote (130084)3/2/2001 4:30:08 PM
From: Zoltan!  Read Replies (1) of 769667
 
>>No relation between the Federal Government's demand for credit and the price of credit? The laws of supply and demand don't work for credit?

To the first: Essentially, little if any.

To the second: Of course. But you are confused.

You stated

"One reason interest rates were able to drop is that the Federal Government was no longer chewing up so much of credit market. Clinton also based his original budget numbers on plausible projections, replacing the smoke and mirrors of the Bush I years."

You were making the incorrect point that declining governmental deficits lead to declining interest rates. There is no such correlation.
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