New Braunfels Herald Zeitung, September 23, 1987, Page 7

New Braunfels Herald Zeitung

View full pageStart a free trial

Issue date:

Pages available: 25

NewspaperARCHIVE.com - Used by the World's Finest Libraries and Institutions

About New Braunfels Herald Zeitung

Publication name: New Braunfels Herald Zeitung

Location: New Braunfels, Texas

Pages available: 319,437

Years available: 1952 - 2013

Learn more about this publication

About NewspaperArchive.com

  • 2.16+ billion articles and growing everyday!
  • More than 400 years of papers. From 1607 to today!
  • Articles covering 50 U.S.States + 22 other countries
  • Powerful, time saving search features!
Find your ancestors now
Start your Genealogy Search now
See with your own eyes the newspapers your great-great grandparents held.

View sample pages : New Braunfels Herald Zeitung, September 23, 1987

Get access to these newspapers Plus 2.16+ billion other articles

OCR Text

New Braunfels Herald Zeitung (Newspaper) - September 23, 1987, New Braunfels, Texas Herald-Zeitung New Braunfe's Texas Wednesday September ?3    page    aGlobal economy affects nation's interest rates NKW YORK (AP An ad ministration economist says interest rates are much higher than can be justified by inflation An investment adviser concurs A real estate economist says “already high rates are a threat to housing In their own particular nay all three are expressing concern about an increasingly important fact of life for Americans The destiny of the I S economy isn t based solely or mainly on domestic factors an> more Awareness of the change may t>e somewhat slow to dawn on Americans whose economy in the past was so big relative to the rest of the world that what happened domestically was (ar more important than w hat happened abroad It isn t necessarily so anymore, thanks to the country's big budget deficits Those deficits need to tie financed Foreigners have the money to finance them, but they want something in return, mainly high rates of return Therefore, while the latest news attorn domestic inflation suggests that it remains in check the need to encourage foreign investments is probably forcing the Federal Reserve to allow higher interest rates While Beryl Spnnkel, outgoing thief White House economist. didn t say so. he quite likely was alluding to this fact of life when he commented that inflation reports seemed good, and that ‘the financial markets arewrong " Wrong or not those interest rates are real and so are worries about them going e\en higher because of the need to keep foreign investors happy Such worries caused John Tuccillo chief economist for the National Association of Realtors to hedge his forecast for broad based economic growth with a reminder that rising interest rates could lower his expec tat ions His projections for housing markets, for example “could re quire significant adjustments'' if in terest rates “must continue to rise in order to continue to attract the needed foreign capital " In exchange for holding dollar assets that could decline in value, he observes that foreign investors are demanding and getting higher in terest rates, even though such rates are a threat to the housing industry John Wright, head of Wright In vestors Service contends that “’in effect the I S economy is currently being held hostage to interest rates which have rightly or wrongly become entangled with the fate of the dollar " In his view, as the value of the dollar declines the Federal Reserve may believe that they should raise the discount rate again in order to shore up the dollar a position that he says is obviously flawed ” The flaw. he says is that higher in terest rates would increase the risk of recession which in turn would worsen the budget deficit and require ever more foreign investment The Fed already has raised the dis count rate, perhaps the most basic of all interest rates since inevitably it leads to increases all down the line. almost immediatelv in business bor rowing and soon after in home mor tgage rates For example, the discount rate in crease on Sept 4 was not very large to 6 percent from 5 5 percent but banks immediately raised prime len ding rates to 8 75 percent from 8 25 percent and mortgage rates moved higher w ithin days Serious damage to the economy already has been done says W right Usa dilemma that the country hasn't faced before at least to such an extent In the past if any one economy called the shots it was that of the I mted States It just isn t that wax anymore WAL-MART Sale Date Sept 23-Sept 27 Store Hours Daily 9-9 Sun.11-5 Location |H 35 A Walnut WAI MART S AOVf RT>SEO Mf HCH A NOISf ROtlCY-l’ S ■ '(■■'>(ior it    erf-'. advertised tee- rn stoc* However it due t< if * on'O'esee' easer- rn advertised terr is riot avatara* tor auf 'wise W e Mar’ *♦ issue a Hair Cnee* or reouev tor toe nercrwxdtix- • fie purebased a' toe sate price wbeneve' a.aaaCrf Of    a-‘i , a Srmiwr item at a comparable redo tor price We reser.i- -ne - gr• ic limit »jar>tities Limitations void Ne* Men' low mmict ive** DAY Standard Sift Dacron ll Bad Pillow* S«t*n Coml or la'» LOW pmtci f »ft** DA Y low mmtcfs eve** day *6 *8 til SLKPT (IU FAT! ( I IMI < lur -'I.Iii' I’ll.I.' AV Orthopedic Pillows *13 Reg. 14 96 *13 ilese £verycia Reg 14 96 Sieapmate Mattress Cushions tor" n ic your .ha;.,/ *o provide •i •" .apport Comte'tab*# W no *. !*»'* a in th*- I-’    *    r    rots , UftythdOe tOUUl Full Sift Reg 19 94 Que**n StJt-Reg 22 9t» *18 *21 V 7(1 AHU IfKfH'S    ; A * »fK HI* 4.26    *14 1 °* PRlCe my*a w 2$H oay tot    -*.90 Reg 15 96 102*90 loc ties Reg 7 96 6.76 tOi •'*() Inc tit* Reg 1996 18 - ;’*** ><ii,,-"hOtng _■ •    '•'hi ’    *    I    ti Rf 2 Fo, Sheet Blanket* Slope notal dot oi -odd it Hjns Mat tWCK- WU'.h Ut id iii* 1‘nyi >1t*l Vellu* Sensation Blanket* Ct him t* cl colds M-u tutu* *usf> and tit, I leu ked DuPont nylon fact* t»ti ti y tor Vpoly ut et bant* foatn bast* ;

RealCheck