SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Stockman Scott's Political Debate Porch
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jim Willie CB who wrote (20377)6/13/2003 2:21:13 PM
From: TigerPaw  Read Replies (1) of 89467
 
War is a compelling distraction!

It does appear that another attempt is underway to borrow ourselves out of the debt crisis.
<font color=purple>Stocks slid today despite growing hopes for an interest rate cut </font>
chron.com

There seems to be 3 main groups of potential consumers to get the retail sector moving. 1) Those rich enough to not have to worry about borrowing. 2) Those smart enought to watch their expenses and debt in a time of deflation, 3) Those who already maxed their credit cards and remortgaged the house.

An interest rate cut won't get any of these to borrow more.

That means that Greenspan must be counting on businesses to borrow. While personal bancrupy can be painful, a business can still go under with bonuses and golden parachutes to the executives. Knowing this, the businesses who are asking to borrow are likely to be turned down since they are too likely to take the money and cash out. Those who are trying to make a profit are also trying to reduce fixed expenses, like interest.

The next rate cut could do worse than doing nothing if it just highlights the fact that there is no prospect of putting extra liquidity to productive use.

(PS. It's pretty rare that I get singled out for being the non-political one in a discussion)
TP
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News