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