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Technology Stocks : Dell Technologies Inc.
DELL 124.01-2.5%9:43 AM EST

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To: Moneysmith who wrote (72373)10/15/1998 6:25:00 PM
From: Chuzzlewit  Read Replies (2) of 176387
 
Ken, I think that your misunderstanding of the dynamics of interest rates is showing. Historically, interest rates hover around 2% over the inflation rate. Inflation is currently a non-issue. But if the interest rate is too high lending domestic by banks is cut off and we have a liquidity problem. Second, with abnormally high interest rates we get a net transfer of funds over here from countries experiencing a shortage of capital. That was one of the major points that Greenspan made in a recent speech. In other words, a liquidity crisis. Repatriation of funds to Asian and Latin American countries is in our best long-term interest even if it spurs a small amount of inflation.

TTFN,
CTC
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