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To: schrodingers_cat who wrote (125091)	5/16/2001 6:27:58 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164684

>> Do you think that the consumer is responding to the interest rate cuts and hopefully starting to lead the economy out of its slowdown? << s_c, I really don't see a quick relationship between the rates set by the Fed and those seen by consumers. For sure Mortgage rates have not dropped 250 basis points since January. But I think the "prime" rate is very closely related to Fed rates. Which lowers business costs, increasing profits, and finally encouraging companies to hire or retain workers. But I think that is a time-delay process and takes several months or maybe a whole year. So when the proposed tax cuts take effect, the rate cuts will be also taking effect. And I think that will be around September.

To: schrodingers_cat who wrote (125091)	5/16/2001 10:37:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Hi Glenn! I think you posted recently that business was looking up. Do you think that the consumer is responding to the interest rate cuts and hopefully starting to lead the economy out of its slowdown? SC, I would be purely guessing if I gave a reason for the consumer to start spending again. The decrease in spending was the quickest halt I had ever seen. The consumer is now spending and the change is was so fast as though someone through a switch. In close to thirty years, I have never seen a turnaround in both directions occur this fast. I do believe the consumer will pull the economy up now. We are ordering merchandise again which will put some people back to work, etc.