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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (172199)	7/21/2003 6:42:48 PM
From: tejek	Read Replies (1) \| Respond to of 1577892

So econ 101 means you can predict interest rates?? To bad it didn't do that for me. I could have made a bundle if I could predict changes in interest rates. Well, econ. 101 is real basic. Gov't deficits need to be funded. The more deficit spending there is, the more drain there is on the cash markets. The more cash that's soaked up by the gov't, the less cash there is for lending to businesses and individuals. That usually means banks can charge a higher interest rate. That scenario is not all dependent on gov't deficits but deficits do play a big role. ted