And now, the time has come to drop in for a visit with Neopia’s leading financial analysts. Joining our hosts today will be Arvid Grundospeck, Chairman of the Neopian Reserve, who’ll be here to talk about how his decision to lower interest rates has jumpstarted the Neopian economy. And now, here are Neil and Maria…
KAUVUTO: Hello and thank you for joining us this week at The Neo-Market Report. I am your host Neil Kauvuto, and as always I’m glad to be joined today by the former Portfolio Manager of the Eyrie High Flyer Fund, my lovely co-host Maria Blumaroono, who’s at The News Desk with the latest word from The Big Board. Maria, what’s making news on the exchange today?
BLUMAROONO: Well Neil, the floor has been absolutely buzzing ever since Chairman Grundospeck announced on Monday that, in hopes of reviving this once-promising economy, he was going to slash interest rates to unheard-of lows. Immediately, investors went into a buying frenzy, sending the Neodaq index climbing an incredible seventy-seven points. The biggest winner this week turned out to be Hakaheke Island Flights, who had been in the process of slowly recovering ever since their stock price bottomed out nearly three weeks ago at twenty-six NPs a share. After modest gains of nine and eighteen NPs a share in the previous two weeks, Hakaheke’s value exploded after Chairman Grundospeck’s announcement, skyrocketing fifty-seven NPs a share as investors scurried to get their hands on the stock. Commenting on his company’s recent good fortune, Hakaheke President Cappa Torville said, “Well, I’m just glad to see the economy as a whole doing well once again. The fact that we’re one of the major companies driving this surge, well… I guess that’s just an added bonus.”
Another company benefiting from this latest boom in the market has been Breadmaster Bakeries, whose stock value soared after The Breadmaster reported on Wednesday that they’d posted record profits for the quarter. While The Breadmaster cited the popularity of Eyrie cookies and Halloween-themed “Spooky Goodies” as a major key to their recent good fortune, the bakery’s prosperity inspired many an investor to jump on the bandwagon, sending their stock value soaring an impressive twenty-five points.
KAUVUTO: Our guest today happens to be a key figure in this recent resurgence by the Neopian economy. As Chairman of the Neopian Reserve, Arvid Grundospeck made the decision to reduce interest rates to unbelievable new lows, giving Neopian investors the boost that they’d needed to get the economy back on track. Mr. Grundospeck, we’re glad to have you here today…
ARVID: Thank you, Neil. I’ m glad to be here once again. It’s always a pleasure stopping by…
KAUVUTO: Mr. Chairman, in the past you’ve been willing to occasionally lower interest rates as a way of stimulating the economy. However, you’ve never done anything this drastic. Is our economy really in THAT much trouble?
ARVID: Oh, I don’t think that’s the case. It’s just that, at this time, I feel like we’ve got a real opportunity to do some unbelievable things with this economy. I’ve got a strong feeling that prosperity is just around the corner… we’re so close, and yet I’m convinced that, without these interest cuts, then we could be missing out on our big chance.
BLUMAROONO: Mr. Chairman, just a few weeks ago, it seemed like we were on the right track; heavy industry was doing well, and the retail sector was starting to pick up… where did it all go wrong?
ARVID: In my opinion, Maria, here’s what I think happened: as you mentioned, we had all the signs of a major recovery… heavy industry had taken off, retail was starting to pick up. However, when that initial flush of capital came into the retail sector, I think they ended up overestimating consumer confidence. So, while the retailers loaded up on backstock and raised prices to compensate for inflation, the consumers sort of said, “Okay, we’ve had our fun and spent our disposable income; now it’s time to put a little bit away in the bank.”
So, these overpriced products just ended up sitting on the shelf, and that’s what put us in the current situation we’re in. That’s why I felt the need to lower the interest rates… you know, give investors some incentive to put money into these companies, so they can stay afloat until the consumers start to come around again. When they do, these customers will really see the fruits of that initial burst of capital in the retail sector, and our economy will return to form.
BLUMAROONO: Well, that’s all the time that we have this week. For Chairman Grundospeck and Neil Kauvuto, this is Maria Blumaroono saying thank you and so long….