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To: JakeStraw who wrote (15961)1/5/2001 2:55:02 PM
From: t2  Respond to of 24042
 
Well yes and no. The rate cut may help financials, housing, autos and such. Is corporate IT spending tied to interest rates? Are communications companies going to increase capital spending just because interest rates are lower, but demand hasn't increased.

From what I have read is that end user demand is there but the markets have made it difficult to gain access to capital. Credit easing should help communications companies as well. The money may not go the ones with bad credit but it sure makes the rates a little lower for better quality borrowers.
Yes..Lower interest rates helps comm companies. I believe it may help just as much as buyers of autos etc.



To: JakeStraw who wrote (15961)1/5/2001 2:56:22 PM
From: pat mudge  Read Replies (1) | Respond to of 24042
 
? Are communications companies going to increase capital spending just because interest rates are lower, but demand hasn't increased.

Carriers business models are based on borrowing money and selling services to pay the debt. So, yes, if rates are lower they'll be able to borrow more and presumably use the funds on upgrades. Demand is still doubling every 100 days and every carrier in existence knows it.

Pat


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