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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: shades who wrote (49849)	4/19/2006 9:39:07 AM
From: Perspective	Read Replies (1) \| Respond to of 116555

...the moral of today's story: It's almost always a red flag when receivables grow faster than sales. Double that when receivables rise while sales fall; triple that for sales to a distributor; quadruple that when the distributor is in another country. That's pretty funny - I hadn't clicked the link and thought you were referring to the U.S. and China, not the jeans company! We do fit the mold: China sees U.S. receivables rising faster than sales as it finances most of our consumption. China is the manufacturer, and we've been relegated to little more than its distributor. And obviously, we're foreign. So, I wonder if the Chinese growth should be viewed with through the same lens. Perhaps it's a Chinese correction we should really be worried about here... BC