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http://www.businessweek.com/stories/1993-04-04/does-the-rate-plunge-just-recut-the-same-size-pie

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Does The Rate Plunge Just Recut The Same Size Pie?


Readers Report

DOES THE RATE PLUNGE JUST RECUT THE SAME-SIZE PIE?

You state in "A big bang for borrowers" (Top of The News, Mar. 15) that "the dropoff in [interest] rates could add almost $100 billion to the economy," apparently implying that otherwise, banks and other lenders would stuff the money down a rat hole. So far as I know, only the federal government does that. Otherwise, it would seem to me that somebody's interest expense is somebody else's interest income.

Arno F. Glimn

Northridge, Calif.

Editor's note: The figure referred solely to homebuilding and other new economic activity spurred by lower rates.


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