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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (1379)	3/5/2001 11:18:46 AM
From: GraceZ	Read Replies (1) \| Respond to of 24758

Since the capital markets are closed for biz doesn't make sense that a lot of companies will be borrowing in order to keep in cash, since so many of them are negative cash flow? An increase in borrowing demand doesn't necessarily mean that business is stronger than it appears. I remember my banker telling me years ago that bankruptcy usually spikes at the beginning of an expansion rather than at the bottom of a recession primarily because credit is still available to companies that are suffering, it's when things pick back up that it becomes apparent who is mortally wounded. Can't borrow your way out of debt.