Hiking Prime Rate Would Hurt Region

Alan Greenspan, head of the Federal Reserve Board, recently proposed a one-quarter percent increase in the prime interest rate. If put into action, this increase would have devastating effects on California’s economy and in particular on Ventura County.

The economy in Ventura County recently has made a turn for the better. Right now, unemployment is low and real estate sales are on the rebound. The county’s economic activity is finally on the rise. However, if the prime interest rate is hiked up one-quarter percent, this will all change. With the increase in the cost of borrowing money, loans will diminish and spending will drop. Any real chance of progress that we had as a county will be slowed significantly. I suggest Mr. Greenspan and his colleagues consider the role of California in the worldwide scheme and not make any changes in the prime rate.

TIM SIMMEN

Camarillo