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Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: techanalyst1 who wrote (13079)	7/25/2002 7:37:26 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 57684

I think the problem is the CEOs were wrong on the downside... economists were right, they had a longer yardstick to gauge demand. To me its all voodoo anyway. L

To: techanalyst1 who wrote (13079)	7/25/2002 7:50:02 PM
From: Bill Harmond	Read Replies (2) \| Respond to of 57684

>>Car companies are offering 0% financing and I doubt it's because people are beating down the door to buy cars. I think 0% financing will be a permanent part of the landscape from now on. It's a great rationalization of the market because the manufacturers carry the financing costs at wholesale market rates (they issue commercial paper) and can deduct the interest, while consumers would otherwise pay retail interest rates and cannot deduct the interest. There's a spread in there that probably goes into car prices. Lets just hope the car companies keep a keen eye on credit quality with these programs.