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To: Ilaine who wrote (108746)	6/14/2001 11:12:43 AM
From: yard_man	Read Replies (2) \| Respond to of 436258

i think you have to look at where in the economic cycle the borrowing is taking place -- and for what purpose, CB. There may be some industries doing exactly what you are talking about, but I don't think they are in the majority at this point. Many say that the dot-coms were an isolated situation-- where borrowing was actually used to "buy" new sales -- I think if you look closer, that this has really been occuring in the high tech sector on a more widespread basis ... especially in the telcom biz

To: Ilaine who wrote (108746)	6/14/2001 12:13:15 PM
From: Ken98	Read Replies (2) \| Respond to of 436258

Another reason for corp. borrowing that I am seeing more of recently is shortfalls in basic operating capital. Many growth companies even of the non-telco variety are experiencing shortfalls between expenses and cash in the bank. <<My thought is that the null hypothesis would be that corporations borrow money because they are expanding production/expanding inventory/retooling, in the expectation that there will be increased future demand for their products and services.>>