Tuesday , May 26 2020
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Corporations Rush to Borrow Money While They Still Can

Summary:
DBG848914 minsIt's really very simple... If you're uncertain about the future, but have the ability to borrow a shitload of money, why not do it? The smart play would be to borrow it and then do nothing with it. If it all blows over, you pay it off, and if not, you may not have to. Personally, I don't do debt and I am not going to start now even if it think I might get "free money". My partners will be taking advantage of the PPP however. And I don't begrudge them that - I see it as an opportunity to get back some of the tax money we've all been paying.

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DBG8489

It's really very simple...

If you're uncertain about the future, but have the ability to borrow a shitload of money, why not do it?

The smart play would be to borrow it and then do nothing with it. If it all blows over, you pay it off, and if not, you may not have to.

Personally, I don't do debt and I am not going to start now even if it think I might get "free money". My partners will be taking advantage of the PPP however. And I don't begrudge them that - I see it as an opportunity to get back some of the tax money we've all been paying.

Mike Shedlock
Mike Shedlock (Mish) is a registered investment advisor representative for SitkaPacific Capital Management (http://www.sitkapacific.com/). Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

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