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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Clarksterh who wrote (25394)	10/16/1998 4:52:00 PM
From: 16yearcycle	Read Replies (1) \| Respond to of 70976

"it typically equalizes out pretty quickly (+330 pts in 1/2 hour). I wouldn't count on it having any further effects over the next 6 months to 1 year." How about 447 points in 24.5 hours?

To: Clarksterh who wrote (25394)	10/17/1998 9:49:00 AM
From: Hank Stamper	Respond to of 70976

"2) Several months later companies start to feel pinch as consumers buy less due to higher rates, and their debt payments increase. They start laying off, and earnings decline. Stock market declines accordingly." Higher rates also lead to reduced capital equipment purchases by industry. Capital equipment purchases are a driver of the economy because they are directly tied to employment levels--they lead employment. Consumer purchases are driven by employment levels and less by interest rates. But they are driven, whereas cap equipment purchases is a driver. Ciao, David Todtman