Arthur,i'm talking about (prime)rates,not lower interest rates,because lower prime rates doesn't necessarily lead to lower interest rate loans for consumer's.
Arthur, lower prime rates effect every business in a global economy.It's like dropping a pebble in the center of a lake,it's felt more where it's dropped,but it's also felt throughout the entire lake. If you use NDB's insidertrader and check on the insider trading that has gone on since April 2000, up until now, by most all businesses and compare their charts to what you see on the insidertrader selling ,you'll be surprised at what you see.Chart all your favorite stocks that have fallen,or any other company that has fallen and you'll see it's all in conjunction with insider selling since around April 2000. once large amount's of shares are dumped by insiders,it causes share holders to lose faith in their company,which creates an environment for panic selling,which if done in conjunction with other large corporations,could cause the market to fall dramatically. This would create a reason to lower prime rates to stimulate the market's world wide.Now the insider who sold at all time highs in the market and helped to create this dismal situation,can now expand their businesses world wide with low (prime) interest rate loans. It's the New Millennium and it's the time for the larger corporations throughout the world to consolidate their industries through mergers and acquisitions. This consolidation of industries will take a considerable amount of money,which would have been to costly if done at higher (prime) interest rates of a year ago.The rates are coming down to around 3% ,which is in a range where corporations can expand and turn a profit for themselves and their investor's. I think once the big boy's like where the prime rate is and they acquire these loans for expansion, they'll start to buy back into this market at all time market lows,which will cause the rest of the investing population to start buying back in again,which will make us all happy campers by this time next year.JMHO (GOODLUCK TO ALL) |