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Strategies & Market Trends : Dave Gore's Trades That Make Sense -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (10671)	8/6/2002 11:52:52 AM
From: Dave Gore	Read Replies (1) \| Respond to of 16631

I think you overexaggerate that fact. Americans have been in debt and were far worse off when rates were high in the Jimmy Carter days of 15% mortgages. In fact, Americans still put themselves into massive debt and had to pay 21-30% interest on bank cards! You also forget that low rates stimulate the housing industry and increases in real estate prices. If I have to pay 12% interest rates on a new home, you can bet I can't afford to buy a home worth as much. I also would refuse to. However when rates are low, house values more easily appreciate and that's where many Americans life savings are. Low rates are crucial, even though I do agree that lower rates are not really necessary at this point.