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Strategies & Market Trends : Winter in the Great White North -- Ignore unavailable to you. Want to Upgrade?

To: ralfph who wrote (1472)	9/27/2001 3:45:33 PM
From: LeonardSlye	Read Replies (1) \| Respond to of 8273

Sorry Ralfph, I've been busier'n a bear cub and didn't see you there. As a part of increased security at the airports, we've got 120 air cadets who have lost their premises and there's a mad scramble to find a place for armed teenagers with an attitude...oye. I knew I shouldn't have become a concerned parent. Ah well, it's for the kids, and as a bonus, I get to be opinionated with some of the adults. As far as the corporate debt issue goes (and this too is in haste) I fall back on the idea that is the basis, as far as I can see, for guys like Von Mises thinking: if it works for the individual, it works further up the line for corporate entities and on to governments. So, as with the ultimate individual being someone like Robinson Crusoe (to use Sperandeo's analogy) all he could work with were savings, he'd put something by to be used later. He couldn't go into debt because he'd be dead if he did. Ultimately, all debt must come from someone's savings for the system as a whole to work properly (without credit expansion encouraging bad debts). I suppose, that in the more modern world with debt being a common instrument (most of us have mortgages etc.) the thing that we mostly try to do is to remove ourselves from it as soon as is practicable to avoid being serviced too badly. But, there's gotta be good debt and bad debt, so the mortage is good debt in that we come out of it with a redeemable asset. A student loan gives us an education and better earnings. If I just borrowed and borrowed and blew the bucks on fancy cars and loose women...well you get the drift. I guess I'd be concerned more about why the corporation has entered into debt than in the absolute numbers and, equally or more importantly, in their ability to keep up the payments from their paycheck after deductions and feeding and clothing the kids. Is it to build the corporation or merely to try to hang in there, or to slow the inevitable? There are a couple of handy little rigs here for the prediction of bankruptcy: abtv.com and sands-trustee.com But, I really think it all comes back to seeing the corporation as having to take the same responsibilities that an individual has to take as far as debt and payments go. It takes the mystery out of it for me. Gotta go, this individual has a meeting with every stereotype you've ever seen in a parents' committee. Happy Trails, Lenny