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To: Earlie who wrote (140883)12/29/2001 9:41:54 PM
From: Joan Osland Graffius  Read Replies (1) | Respond to of 436258
 
Earlie, >>It is certainly possible to have both operating in an economy.

What does not make sense to me is when an economy has been built on credit like the US during the past 10 years, there has to be an interest rate level where the basement caves in. Further more the cost of capital to our corporations is not declining. Moodys is very busy make sure of this these days. I have been looking at the Merrill Lynch bond inventory and it is hard to find corporate AA rated bonds. We know the consumer has a fair amount of debt load and increased interest rates are not going to be good for this groups future spending. The retired people are in trouble with income from money market funds or CD’s.

As you can see I am struggling to figure out how this is all going to play out.

Joan