Thread: Interest rates
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Old 19-03-2008, 12:22   #8
Wicked_and_Crazy
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Re: Interest rates

The issue the US will now have in the short term is that interest rates are now lower than the rate of inflation, therefore the incentive is to spend and not save. Given that he banks are reigning in on lending there will be no money to spend so prices will have to drop which will cause companies to make less money and jobs will be lost.
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