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LouisDesyjr

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LouisDesyjr

Re: hummba post# 487

Friday, 09/18/2015 10:53:51 AM

Friday, September 18, 2015 10:53:51 AM

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Financial engineering gone bad

They just kept borrowing to expand, as though the demand for their products was going to keep growing forever. There is a recent article that mentions another one did the same thing. I think it was Vans, it became popular, then piled on debt to ramp up, demand for the products fell off and then they are in trouble since they can't keep up the payments for the debt.

If they had just grown from their own earnings, that would have grown slower and not been in trouble with all of the debt.

Louis J. Desy Jr.
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