FOMC: rate same, bias towards ease

[Nomiprins at aol.com]

In a message dated 8/13/02 5:52:37 PM Eastern Daylight Time, 
michael at ecst.csuchico.edu writes:


> Nomi, why could you not say that the rate cuts prevented a more serious
> implosion?
> 
> 
I suppose that's possible. But you could also say that since the cost of 
capital was cheapening, corporations were able to pile on even more debt 
while they were sinking (the past year produced the highest per-period 
bankruptcy toll ever), making the eventual implosion even harsher.

Nomi
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <../attachments/20020813/f007cfa9/attachment.htm>