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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: voodooist who wrote (46018)2/7/1999 11:26:00 PM
From: Richard Nehrboss  Read Replies (1) | Respond to of 132070
 
Fred,

RE :"Lower interest rates bode well for metal demand because of its use in capital goods--should help the stock prices too.

Lower interest rates stimulate corporate expansion, spending and manufacturing. This is why metal demand rises in a low interest rate environment. For example, in a low interest rate environment, GM sells (supposedly) more cars. It takes more steel to make those cars.

Richard



To: voodooist who wrote (46018)2/8/1999 11:30:00 AM
From: Knighty Tin  Respond to of 132070
 
Fred, It also has something to do with the Fed printing so much money and expanding credit so greatly that investors are desperately searching for anything that is not an overpriced trading sardine.

MB


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