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Corps' raw material buying strategy... (Kebir Blue)

Simcountry: Simcountry Bulletin Board  Corps' raw material buying strategy... (Kebir Blue)

Imprudent Spender (Fearless Blue)

Thursday, November 11, 2004 - 08:54 pm Click here to edit this post
So they bought 24 monthes worth instead of 12. That means in 12 monthes you it wont be buying another 12 because it already has it. It all equals out in the end.

No it doesn't, because in order to get those 24 months worth of supplies many corps have to take out $20B or even $40B in loans.

Which means then they're loosing money in the long run because of interest payments and perhaps payoff penalties as well.

Sure, a stable industry with lots of cash available can afford to stockpile many years' worth of cash.

Those which are starting up cannot.

It's simply not realistic.

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