Slashdot is powered by your submissions, so send in your scoop

 



Forgot your password?
typodupeerror

Comment Re:Stop Perpetuating the Fear Mongering (Score 1) 729

That's not at all what I'm describing. In my example, the company has more than enough assets to cover the spread, but they're not being kept as cash. Non cash assets take a little time to be made liquid. The money could be kept as a larger cash reserve, but that means a lower return than if they could just leave it invested and borrow money from someone else for a day or two.

Go look at the balance sheet for a large company. For example, MSFT. MSFT has billions and billions of dollars in reserve assets, yet they still borrow money now and then. They do it because it makes more sense than constantly yanking money out of other investments to cover a one day cash shortfall.

Slashdot Top Deals

If Machiavelli were a hacker, he'd have worked for the CSSG. -- Phil Lapsley

Working...