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To: kms61
...what happens if they cut rates again and the public gives a collective yawn?

One of the purposes of those interest rate cuts was to shift money to the stock market, as comparatively a better place for savings than CDs, etc. It doesn't seem to work that way though. When the interest rates go down, people tend to remortgage their houses and go on spending binges.

Meanwhile, those that are responsible about their economic picture have, in many cases, given up on the stock market, pulled their money out, and put it in something safer.

I love these articles that predict the future. I'd take what any one of these experts say seriously...if two years ago they had said interest rates and stock market valuations would be at this point today!

7 posted on 08/05/2002 4:08:20 AM PDT by grania
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To: grania
The other thing they can do is dump tons of easy money into the system. We are in real trouble then.
8 posted on 08/05/2002 4:12:18 AM PDT by Ahban
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