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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: average joe who wrote (70586)	10/11/2008 6:31:43 PM
From: Maurice Winn	2 Recommendations Respond to of 74559

Yes, that's a good theory, but the producers can't just keep their goods and going out of business by refusing to sell is comparable to going out of business due to debtor default and bankruptcy. So, they will harvest their crops and choose the most secure looking buyer they can find, with a letter of credit from one of the most secure looking banks. Buyers could do things like pay half before delivery and half after delivery, sharing the risk, AFTER inspecting balance sheets and the like. Suppliers could say "Show us your financial records" before supplying, I used to say that to customers of mine in Canada in 1975/76 who wanted to buy from Texaco Canada Limited. Providing financial records was part of obtaining credit. What's going to happen is that those not wearing bathing suits as the tide goes out will be exposed, whereas those properly attired will get the business. Money can be paid to a third party trust, such as a lawyer, who would only release the funds on delivery of the goods. If there's no delivery, the money would be returned to the prospective buyer. No worries. Mqurice