Santorum: McCain doesn't understand interrogation

[Conan71]

That was likely largely due to the FRB's increasing the target rate up over 6% in early 2000, which pushed commercial paper and corporate bonds up over 7%, a level not seen since except during the recent liquidity crisis.

No, it simply means manufacturer's sales were down, which meant they didn't have near the demand for machine tools as they had prior to then.  We've seen a prosperous economy with higher primes than that.

If you ascribe to the idea that 3% is a nominal amount in terms of taxes and how they will or won't affect the eocnomy, then a percentage or two in borrowing rates should also have a limited effect on the economy, right?

[nathanm]

If you ascribe to the idea that 3% is a nominal amount in terms of taxes and how they will or won't affect the eocnomy, then a percentage or two in borrowing rates should also have a limited effect on the economy, right?

In things like machine tools which mainly have a demand when the manufacturing sector is expanding (as I understand it; I may be wrong..as guido likes to point out I don't know everything about everything), borrowing costs are relatively important.

Economically speaking, higher taxes are less contractionary than higher interest rates, as taxes only apply to the profit.

[Red Arrow]

In things like machine tools which mainly have a demand when the manufacturing sector is expanding ...

As I remember it, our customers' sales were down, or at best stable, and they didn't need our product at the time.  They didn't need new equipment and replacement for old equipment was also down.

[heironymouspasparagus]

Kind of independent of either Billy Bob or Bush.  

I was in oil service related business at the time.  Oil was recovering from a 98 - 99 low of under $10 a barrel.  The hotness was still in telecom, but the real economy was not quite as exciting; still doing well, just not as well.  The oil related companies used that as an excuse to make cuts (no, not me) and load the remaining people up with heavier work load and reap the windfall.  Same old same ol'.  Plus they used that as first big push to move all the machining to China.  Small pieces before that, but that time for real.

So, since all the real manufacturing was moving to China, what need is there for machine tools??  Much less...