06-08-2004, 03:46 AM
|
|
|
aspiring banker
Join Date: Mar 2002
Location: toronto
Posts: 10,870
|
Quote:
Originally posted by Carlito
Interest rates went down because of the strength of the enconomy, do you remember the major jumps in the stock market following the election? Then, of course, it all leveled off looking not so well for a long time, I was hearing everyday that " Nasdaq dropped 7 points today " But then, suddenly, not too long ago I started hearing increases, its because of the economy, which is influenced by lower TAXES, because when Americans have more money left out of their paycheck, they spend it, and that helps the economy. When small businesses are paying less taxes, they hire more people, or otherwise restructure and things improve, also helping the economy (trickle down), this is why the Federal Reserve could help the rates, because the economy is stronger. Believe it or not, the government also makes more tax money when this happens, because of sales taxes.
Like I said, the economy is better in transparent ways, that people like you will not see.
They will go to an all time low WHEN Bush's plans to drill in the permafrost of whatever the fuck that is in Alaska, or, is removes the EPA bullshit enough to establish producing oil rigs off the coast of California, thus lowering the need for foreign oil, and thus lowering the costs, and blah blah blah, figure it out.
|
economy is strong? shit is about to hit the fan over the next 12 months or so. it could begin with a big currency drop which can cause a market crash. high inflation with low growth is a possibility and if something bad does happen there's really nothing to turn to in order to help the economy.
interest rates dropped because of the weakness in the economy |
|
|