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To: Texas Peartree
Scenario Two: your business owes a bank $100 million and cannot pay it. Now it is the bank that has the problem. Strangely, the bank may even try to partner with you to ensure that you do not default on this loan. Heck, you may even have more credit extended to you.

I forget the exact numbers, but FedEx burned through a ton of cash before it became profitable. In an interview, the CEO said he discovered something: "If you owe a bank $10,000 and can't pay it, you've got a creditor. If you owe the bank $100,000,000 and can't pay it, you've got a partner."

8 posted on 01/22/2011 11:59:50 AM PST by Richard Kimball
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To: Richard Kimball

A quote from the following article
http://www.forbes.com/2010/03/11/treasury-securities-national-debt-china-trade-opinions-columnists-bruce-bartlett_2.html

“The Chinese dilemma reminds me of a quip once made by economist John Maynard Keynes: “Owe your banker £1,000 and you are at his mercy; owe him £1 million and the position is reversed.” (The quote can be found in his collected writings, vol. 24, p. 258.)”

Our President has never demonstrated that he has the ability to implement such knowledge. No administrative abilities, managerial skill nor economic sensibilities necessary to take the requisite actions.

We’ve got a rough ride coming up - to be sure.


40 posted on 01/22/2011 5:22:40 PM PST by PeteCat
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