Exact(1)
Why doesn't that short interest depress prices?
Similar(59)
Suppose somebody says something like "Well, government borrowing drives up interest rates, and higher interest rates depress private investment, so increasing government spending in a slump is actually contractionary".
These higher interest rates depressed interest-sensitive spending in areas such as construction and automobile purchases, which in turn reduced production.
EVERY economics student learns that higher interest rates depress growth by curbing borrowing and spending.
Executives at Lehman Brothers and Goldman Sachs said revenue from mortgage bonds in the United States is dropping as rising interest rates depress home sales.
So chief among the critics of QE have been pension funds, which argue that lower long term interest rates depress returns on savings while doing nothing for the economy.
Unfortunately, high interest rates depress economic activity by increasing the cost of servicing domestic debt.
Rising interest rates depress mortgage demand, but Golden West is better positioned than most to weather increases.
P/E ratios are set by many different factors, including industry growth (higher growth means higher ratios), interest rates (higher interest rates generally depress P/E ratios), consistency of earnings (predictable earners trade at higher ratios) and payout ratios (companies with generous dividend payouts trade at lower ratios).
High interest rates depressed British spending and led to high unemployment in Great Britain throughout the second half of the 1920s.
And rising interest rates depressed the market for all sorts of new corporate bonds, especially junk bonds, which are issued by companies with poor credit ratings.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com