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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: Jorj X Mckie who wrote (44843)	7/23/2003 2:05:52 PM
From: MulhollandDrive	Respond to of 57110

bottom line here is rates be damned, debt is still debt. you do not take on the burden of additional debt for expansion when there is still overcapacity that needs to be worked down and with still too many players off the field. even if you think inflation is coming, and you can pay the debt back with "cheaper dollars", you only do so if there is a clear belief that cash flow stemming from increasing demand will continue to grow... it seems the major debt that's being incurred right now is the debt to pay future liabilities, pensions for example i guess the much vaunted second half recovery (if it materializes as advertised, now predicted around 4%) will tell watch and wait, don't f#ck with rates. :)