| I envision rates rising regardless of who wins. And here's why. All
3 major candidates favor business expansion to jump start the economy,
and Mr. Bush perhaps too much with the "free trade agreements". But never
the less, I believe expansion will happen. Perhaps a tax increase of sorts
will motivate payment for business expansion. And when an expansion grabs
hold more and more businesses will be inclined to expand their individual
enterprises (via bank loans). Banks are in business to make money not
to be a benevolent caring partner. When demand for loans escalates,
guess what?, the interest rates rise with the demand. And XYZ Co. will
want a piece of the action and will try to get in under the wire before
the next rate increase along with many other businesses. The banks are
loving this by this time and seek to increase profits even more by
raising rates again, and now ABC Co. wants in before the next rate
increase, and the upward spiral feeds itself. To not collapse the
system, a safe zone will be reached perhaps around 10-11%.
My disclaimor is that this is my opinion and is not based on any
historical facts or previous administrations' events, or financial
principles, just common sense.
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| While not exactly a reply to the base note (although it's related)
I heard this on the radio this morning.
Clinton has an 11 point margin, down two points from last
week. Perot is up two points, while Bush's performance is
flat.
It's starting to sound more like a stock market report and less
like an election.
Martin H.
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