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1990 Normal interest rate scale is turned upside down TORONTO Where that big drop in interest rates we all been waiting for Interest rates have eased a bit over the past two months The ben chmark prime business lending rate is 14 per cent at most banks and trust companies down a half from its recent high But with all this talk of recession that all there is To understand what might hap pen to rates it is useful to step back and review how strange have been over the past year or so In normal times you more for money the longer want to borrow it Conversely vou change more interest the longer are willing to lend your out So a mortgage loan should cost more than a one And you should earn monev money per year on a fiveyear guaranteed in vestment certificate than do on a one one IPSIDEDOHN This has not been the case recent Indeed the opposite is true the longer loan the less pa Con longer the GIC term the less earn This is what is known as an inverted cure the normal upward slope of in terest rates over time is upside down Recent rites at the Bank Dianne of Canada show this A one GIC for example pavs II per cent Three- four and fivevear per cent One two- and mor tgage loans cost 13 per cent Four and fivevear loans cost 13 5 per cent Yet the difference while notable is narrowing The in verted curve could soon flat ten Then it could return to its nor mal upward slope The is how will it do this Will rates on the short end fall or those on the long end rise Or both Chances are both Short term rates are be monev market long term rates the bond market While the Bank of has been easing its tight hold on the reins bond have been growing in creasinglv restive This is partly because bond buyers do not believe North American central bankers will win the battle against inflation More significant though is the big in crease in Japanese interest rates Higher interest rates in Japan will suck money from North America making it harder for governments to finance their deficits so the thinking goes NOKLlIEh If this ominous situation comes to pass borrowers awaiting interest rale relief will have to wait a while longer Instead of fail as expected mortgage rates could stay where they are or climb higher The bank rite could ease a bit further but fixed term rates could rise This scenario was not in the cards a short while ago The con sensus was that sooner or later rates would fall across the board this time next vear they would be substantially lower economists predicted They were forgetting about the rest of the world Still there are those who would argue that mortgage rates will fall no matter what the term simply because the real estate market is so weak Bad news will turn into good news in time I share this view Japan and Germany can do what they will with interest rates In North America they will fall or wewill be in trouble Public is increasingly concerned about environmental issues BROUN Manager onsumer Sen Ices Public concern for environmental issues has accelerated in recent years Opinion show that safeguarding the ironment con to be the most important issue for consumers in Canada and in manv other countries Blue Box collection programs for recvchble matemls are up in with verv high rates of participation Retailers are get ting involved in providing a wide of green products is no surprise that me ma are unsure of the v of el urns hit products are fnendlv to Hie environment or rend or biodegradable So called products can have some negative impict in their production use or disposal facilities not exist m certain parts of Ihe count resulting in a glut of items collected through Blue Box programs And biodegradable products mav not be a panacea because of questions about residues produced as breakdown But import in efforts are being made by manv consumers to reduce the waste they produce Some packaging manufacturers are responding to consumer concerns and are redesigning their products so they are less wasteful of resources And Canada En Choice Program mentioned elsewhere in this issue is ensuring that consumers do have a real choice to make in the im pact they have on the environment when they purchase goods CSA s ECP Technical Committee provides expertise to develop Guidelines for product categories in order that manufacturers can be authorized to he to products w Inch with the Guidelines Products least harmful to the environment will be allowed to Concerns Consumers in other countries are also concerned about the en impact of their pur chasing decisions The Consumer Committee of the Interna for tion ISO is discussing issues International efforts to label pro duets in reflect their degree of en vironmental impact Canada will be evaluated with a view t seeking uniformilv in labelling of such pn duels This could reduce ex peeled in the global is trade barriers art eliminated and products bearing a mirks cross borders more isilv Isr are making strides in reducing their of Regulators are im posing restrictions on tin amount of major household ap can use example On sets specific maximum consumption levels for certain household appliances pro vinces ire considering similar regulations Program The CSA Consumer Program pro vides a vital link between CSA and consumers end users of products and services Volunteer consumer participation on many standard writing committees and five Ad visorj Panels assists to be more responsive to the needs of ton sunicrs Some of the subjects con by s Advisory Panels during the past vear include mobile homes head protection equipment ventilation requirements in housing the elevator code and suntan ning equipment Your input can make difference Help Wanted Electrical cord failures Con sumers have expressed concern about failures of electric cords on appliances such as hair dryers tics toasters irons etc Heavy use and use patterns such as storing ap phances with cords wrapped tightly around them may result in wire conductor breakage inside the cord covering Most such problems occur where the cord enters the appliance or at the plug end and appears that more failures occur with flat thin round cords If you have had a cord failure we would like response to I he following To what was the cord connected I the cord flal or round wriinig which appears on the cord identifies the wire ige ind if still hive the product what information is on cord I what point on the cord did failure occur eg it he or in between the nature of the failure g were there visible sparks or arcing or did the cord simpl slop functioning was the age of cor dappliance and how frequently was it used 7 Did the failure cause any injury or property damage g where there burns or scorching of faces Your input will assist to prove standards and related product safely Please send your responses lo Browne Manager Consumer Services I7H IU Ontario IK I inks for your help Survey Completed Wednesday Sept MORTGAGE RATES ANNUAL INTEREST SIX MONTH ONE YEAR TWO YEAR THREE YEAR FOUR five TRUST COMPANIES Canada Trust 13 13 25 13 25 13 13 25 Municipal Trust 13 13 14 14 Trust 1325 13 13 13 13 25 CHARTERED BANKS Bank of Commerce 13 13 13 13 13 25 13 Bank of Montreal 13 50 13 13 13 13 Bank of Nova Scotia 13 13 13 13 13 Royal Bank 13 13 13 13 13 25 13 Toronto Dominion 13 13 13 13 13 13 This survey was prepared to help the Herald Homestyle readers track weekly Bank and Trust Company rates Home danger points should be identified This article is provided by local Realtors and the Ontario Real Estate Association for the benefit of consumers In the real estate market Is your home a danger zone for tiny fingers and inquisitive little minds If you have small children of your own or receive frequent visits from young relatives who like to explore then you should do some investigating yourself to make sure your house is child proofed Every year many children are hurt in household accidents which could been easily prevented with a little foresight By child proofing your home an using some common sense you can avoid altogether that to a young child a home full of bright and interesting things like the dangling cord on a hot iron or in unprotected wall socket AHo keep in mind that toddlers hive been known climb up onto counters open unlocked medicine and in some cases even pry off caps of child proof medicine bottles Some Precautions Tak There are several simple and inex pensive things you can do the house to make it a safe haven for children Put special socket covers on electrical outlets when they are not being used this prevents children from poking them with their fingers or sticking foreign ob jects into them Have the temperature of your water heater adjusted if the water coming out of your hot water tap is extremely hot Children often like to play with taps and young skin is very sensitive and can hum quite quickly When drawing a bath try running cold water first and add hot as re quired to warm it up Also make sure you use ruhber mats or skid strips in lub so toddlers won I slip and hurt themselves Never leave a child unattended in the bath You should also cover any sharp comers of furniture with protective rubber covers to protect children if they fall against them It s also a good idea to make sure all your furniture is stable For in stance check to ensure that a chest of drawers won tip over if all the drawers are pulled open Also make sure the cords of your window blinds are kept out of reach of children Youngsters tend to be fascinated by dangling objects and could accidentally strangle or hang themselves with the cord They can also choke if they try to swallow the cord weights Don t Leave Unattended Children should never be left by themselves to play in the garage basement or attic Often there are many substances located in these areas that could be fatal if ingested such as insulation or paints If you smoke empty your ashtrays regularly Discarded cigarette are objects of great in curious children Light and matches should also be kept well out of harm sway You should also keep all hizar dous substances such as solvents and herbicides in their original con tamers in a secure place Many young children have been poisoned by drinking substances stored in old pop bottles or food jars Keep your cupboards and cabinets locked with latches and make sure other potentially dangerous malenats like bleach drain cleaner delergenls cleansers pesticides and any medicine are kept well out of reach ma secured cabinet You should also lake the time to educate your children and explain why certain items the house arc dangerous Their understanding and cooperation will give you a of mind