Businessweek Archives

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.


Hollywood Goes YouTube
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus