Business: Some Interest Rate Roulette

The recession rumbles on, and all bets are off

For millions of Americans, from cash-strapped home buyers to laid-off auto workers to jittery Wall Street investors, the single most cheering result of the economy's spring-long slide has been the dizzy drop in interest rates from their alpine heights of last winter. Only three months ago, banks were charging their best corporate clients 20% interest. That rate last week was down as low as 11¼%. The question now is whether it will stay down, and for how long.

When the cost of money shot up early...

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