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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: TigerPaw who wrote (287365)	8/16/2002 2:01:00 AM
From: Lazarus_Long	Read Replies (1) \| Respond to of 769667

If you got another 80 IQ points, you might qualify as a moron. Why do I bother with you? The government, which had been a partner in the technological boom, suddenly became a competor for capital funds. Pay attention now. This is tough. Interest rates went up because the Fed raised its rates. They do more than that though. Those rates are target rates. They control money supply. The jiggle the money supply until they get fed fund rates in the area of their target. Other interests rates react to those changes. Now that jiggling of rates and money supply has other effects too. It makes money- -loans- -more or less expensive and more or less available. That affects business. They do more or less well depending on how much money the fed feeds them. If they've turned into money hogs (think: '90s) and then the fed turns off the tap, they don't feel well. Some of them die. The situation you've got now. Now tell me something: If the gov't became a competitor for funds under Bush, why did they start rising in June 1997- -under Slick? Yes? Did Slick suddenly change tacks and forget to tell us? I'm waiting. And if the gov't became a competitor for funds under Bush, why have they been FALLING under Bush? Competition should raise, not lower, the cost of money. Oh, and rates actually started FALLING under Clinton. Did he change tacks again? Yes?