Rising Interest Rates Worry Investors

[Guaranteed]

http://story.news.yahoo.com/news?tmpl=story&u=/ap/20030809/ap_on_bi_st_ma_re/weekly_wall_street

By AMY BALDWIN, AP Business Writer

NEW YORK - Wall Street had to face another hard reality this past week: Interest rates are rising, and threatening to undermine an already uncertain economic recovery.
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"The reason the stock market is essentially stalled out is because not only did interest rates rise, but they have risen more sharply than they have at any time since May 1987, and in percentage terms they have risen more sharply since any time since 1962," said Hugh Johnson, chief investment officer at First Albany Corp.

Market analysts say the higher rates aren't warranted in an economy that remains far from robust, even fragile.
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Among the data that fail to support the need for higher rates, Valliere cited an unemployment rate of 6.2 percent. He also said there's no evidence to say that inflation is back.

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This is very bad news for the economy. What this means is that the loan market is getting tapped out...there just isn't enough money in the country to even be able to kick-start the economy through loans...
Reading the article it can seen how a lot of these investors are in denial...they're hoping that the rise in interest rates is actually a GOOD sign, a sign that the economy has already rebounded. But the fact is that unemployment is still going up, and it needs to have started going down by the time interest rates start rising, if the economy is to be rebounding.
Bushco isn't going to be able to fix this by election time. Things are already too messed up. Plus the war.
So, my guess is we're gonna have another one-term Bush. :smoke: