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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: BWAC who wrote (41246)	1/4/2001 3:30:50 PM
From: TimF	Respond to of 70976

An interest rate cut would mean an immediate $100 MONTHLY savings to the middle class consumer. $100/month makes for $1200/year. For a normal sized (.25%) rate cut to translate to $1200 year of savings your middle class consumer would have to have about $480,000 in debt. I doubt that level of debt is typical among the middle class. Not everyone in the middle class is a home owner and most homeowners don't have half million dollar houses. Ofcourse the recent rate cut was .5% not .25% but even the implied level of $240,000 of debt seems a bit high. Tim