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

To: combjelly who wrote (252101)	9/20/2005 10:06:00 AM
From: Taro	Read Replies (1) \| Respond to of 1572124

A credit rating measures a debtors ability (and willingness) to pay back his debt to terms. The lower the credit rating, the higher the risk surplus added on top of the average interest to be paid. As simple as that. If the total debt, however, approaches a large chunk of the world total GNP, things start getting more complicated, I admit to that. But no economists worth their salt believe we are there as yet or soon. Sure, some are concerned we will eventually get there if we don't hold the horses soon. Just imagine, on credit hold with the Saudis. That would be similar to US imposing an oil embargo like they did on the Japanese just before Pearl Harbor... Taro

To: combjelly who wrote (252101)	9/20/2005 3:51:11 PM
From: tejek	Read Replies (1) \| Respond to of 1572124

Can't say this is one of Greenspan's finer moments..........I think Katrina will slow the economy considerably and that more interest rate hikes are unnecessary. Fed Raises Rates Again, Calling Storm a Near-Term Setback By EDMUND L. ANDREWS Published: September 20, 2005 WASHINGTON, Sept. 20 - Saying that the devastation caused by Hurricane Katrina was unlikely to pose a "persistent threat" to the economy, the Federal Reserve raised short-term interest rates this afternoon for the 11th time in a row and signaled that more rate increases are likely in the months ahead. Text of Fed Statement Though the central bank acknowledged that the hurricane and higher energy prices would probably lead to slower growth and more joblessness over the next few months, it said financial conditions still appeared to support economic growth. At the same time, it left little doubt that its top priority was to head off inflation and it explicitly warned that the recent run-up in energy prices could increase inflationary pressures. continued......... nytimes.com