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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Joan Osland Graffius who wrote (93126)11/18/2001 11:21:32 AM
From: Knighty Tin  Read Replies (1) | Respond to of 132070
 
Joan, The problem is it is not a one-horse race. Interest rates going up is measured vs. inflation and economic growth in some sort of unholy matrix. Since the govt. can fake the latter two numbers fairly easily, and have been for over a decade, it might take longer before it is a killer.

The key, IMHO, is how high rates go before they eat the lunch of borrow short, lend long federally sponsored scams like the two "F" words, or should I say "F" names? Those two have stimulated the economy much more than direct govt. spending and any reigning in of their borrow and spend like drunk sailors management styles will clobber the economy.