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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: George K. who wrote (12991)	4/30/2004 9:05:31 PM
From: Elroy Jetson	Respond to of 110194

Rising interest rates primarily affect potential purchases going forward.However, those inclined to purchase using debt are already heavily indebted. At the current low rates, even small interest rises will increase interest income by a very large percentage. As a result I think the purchases lost due to higher rates would be more than offset, in aggregate, by new purchases made by savers receiving higher interest income. Obviously some economic sectors, like housing, would be hurt while others would gain.