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AMZN 247.35+0.4%Jan 9 9:30 AM EST

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To: zonder who wrote (150229)11/18/2002 12:00:15 PM
From: Oeconomicus  Read Replies (1) of 164684
 
All that lower interest rates can do at this point is delay the pain. Both on corporate and personal accounts, there is enormous amount of debt already. All that a lower interest rate will accomplish is:
1) Increase liquidity - may not be a good idea as it often leads to inflation.
2) Ease the burden of interest payments - symptomatic treatment. Delays the pain.
3) Encourage people and corporations to take on more debt - God forbid. It is fortunately very unlikely.


You point out potential, though remote, dangers, but you fail to propose a better answer. Finding fault is a lot easier than proposing an alternative and convincing people it is a better course.

I do not think you are qualified to talk macroeconomics, Victor.

And you are? How so?

PS: If you are suggesting that higher rates and less liquidity are a better answer to slow growth, then I am ROTFL.
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