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siyux interest rates must drop to spur confidence in economy all the doubters are scratching their heads interest rates really are falling just as we expected the question is why well its pretty simple the feder al reserve in the united states wanted to slow the economy enough that there would be no worries about future inflation they may have done too good a job the soft landing they were hoping for looks like if s running into a little turbu- lance some economists are talking that its going to be hard enough that we might even see a recession some time in late 1996 thafs right at election time do you think the administration is going to settle for that in the middle of a presidential election year i think not so what is happening with the economy well give your local car dealer a call and see how sales are doing or how about checking with the real estate board to see a com parison on real estate sales new housing starts are actually up but that includes multifamily sales the more expensive single family market which translates into furni ture lawn mowers appliances and other sales is very flat or down and resales are nowhere if only to turn on the heavily job related housing markets interest rates must fall and they will you see the housing market has a major role to play here i just men tioned jobs but you also have to think about the banks and other lenders they sold tons of mutual funds in the past few years they were able to invest that money but this year during the rrsp period there was much more demand for term deposits and gics how would you like to be a lender flooded with money that you have to pay interest on that you cant lend out especial ly when all your competition has the same problem its a very competi tive world out there right now the lenders will be prepared to listen to offers below the quoted market rates and you owe to yourself to play hardball and negotiate with them to get the best deal look at the employment numbers theyve been getting better but last month the jobless rate in the us jumped from 55 per cent to 58 per cent does that sound like an economy thats cooking last fall the economy was running at a five per cent pace now some analysts worry its running at only a one per cent rate thanks to the interest rate increases interest rates must come down to create some confidence in the economy that word confidence is extremely important if consumers dont have it they wont buy anything they will hoard their money so look at whats happening with consumer sales theyve been weak since christmas and they will stay weak until con sumers are confident that their jobs are safe it will take lower interest rates and stronger economic growth to convince them of that so recognizing this sce nario what do we do with our mortgages and other your money brian costello debts well you have sev eral options the first is to take the shortest term possible with the highest degree of flexibility you want to be able to pay off or lock in or negotiate as easily as possible howev er this should be a the harris health tax how it will hurt you to pay for a tax break to big business the conservatives want to impose a hefty health tax on the middle class according to the toronto star harris has suggested cutting roughly 400 million in business taxes and raising 400 million in a new income tax to help fund health care may 28 1995 depending on what you earn you could pay up to 2000 a year for health care under the conservatives the conservatives arent telling you about it because they know you wont like it so ask yourself what else are they afraid to tell you thinking of voting ndp think again the ndp dont have enough support to form the next government the liberals do a vote for the ndp is a vote for mike harris and a new health tax on june 8th vote to protect your health care vote liberal to stop mike harris for information call 9056401090 or 18004722984 oliberal authorized by ihe cfo lor the david marquis campaign m hire a teen this summer molmeaiwcmbei mutuifymjopbii cofmtftflnh car 8822081 formori w hoffmtiofl j family golf driving range highway 48 west side 12 km north of 16th ave for information and conditions ph 4717204 lesson special 6 1 hr lessons 10 large buckets 175 this sunday june 4th at 1 pm moe norman will be at family golf plan to attend and watch moe do magic with a golf ball givenif youve been following our advice over the years but theres something else you should be doing right now the lenders are loaded with money the bank of canada has to play within the rules set out by the world markets as a result administered rates like the prime and the bank rate are tied to a degree to what happens in the world markets the major lenders being chock full of cash want to maybe have to get the money out as fast as they possibly can they are going to be open to deals that are reason able make sure you negotiate ill bet many lenders will be happy to lend you money at a half per cent or so below their 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