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...

Want the full story?

Subscribe Now


Get TIME the way you want it

  • One Week Digital Pass — $4.99
  • Monthly Pay-As-You-Go DIGITAL ACCESS$2.99
  • One Year ALL ACCESSJust $30!   Best Deal!
    Print Magazine + Digital Edition + Subscriber-only Content on

Learn more about the benefits of being a TIME subscriber

If you are already a subscriber sign up — registration is free!