Doug Henwood, seconding Gene Coyle's views, writes: "The price of credit matters much less than its availability, and the willingness of borrowers to use it." Won't credit be made available if the price is high enough, and borrowers more willing to use it if the price is low enough? A two percent decline in mortgage rates led million to refinance their mortgages (not a small factor in freeing income for consumption to fuel the recovery from 1990-1991) Real estate development, construction, retail and wholesale trade, indeed, all businesses in which capital takes mainly the form of inventories, remain interest rate sensitive. Anyway, it doesn't make sense to discuss the effects of interest rates without a context: a/ yield curves; b/ inflation rate; c/ profit rate; d/ employment level and degree of expected employment security Q to name a few "contexts." Jim O'Connor