....well, I'm not sure.
I've never bought into the notion that an election keeps people from buying...until now. Add this highly unusual election with the overall economic climate, and yeah, I think uncertainty is having a huge effect. I am afraid Sarah will 'remove all doubt' this Thursday, though I suppose if she shows up and doesn't drool on the podium she'll be declared the winner.
Who knows whether that will all clear up on Nov. 5. The economics will remain bad, but maybe the uncertainty will be diminished.
....or not.
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I figure Sarah will stalk the White House, jumping out at McCain.
BOO!
Just joking, John. Oh, by the way, your cat just got run over...
Jusk kidding.
Boo!
Dunc, have you ever had to get a loan to make payroll?
Both of us have owned and/or managed multiple small businesses, and managing cash flow versus employee hours in such a way as to be able to pay them plus the FICA, Medicare, etc. was key. We never considered floating wages by using credit.
I keep hearing this from the cable pundits, about how the little people will be hurt because their employers won't be able to get loans to cover their paychecks.
Yeah, that has pretty much mystified me, too. A loan for new inventory lines and/or store expansions, but not for day to day expenses, or regular inventory.
By the way, since this my blog, I'd like to point out that you and I were right on about Palin last week, in every way; that she wasn't ready for prime time, -- that she would become a joke, I said on Letterman, and instead it was McCain who became the butt on Letterman. And Saturday Night Live Tina Fey absolutely nailed Sarah.
And Obama's lead is firmly back. (Though I think he needs a minimum of 6 points to overcome racism.)
And that events in the economy are going to prove to be decisive in favor of Obama. Hard to pretend for McCain to suddenly pretend he's a reformer.
In fact, everything I said. Not that Tim or Buster or those guys would ever admit it....
The issue is credit lines for used for cash flow. Many if not most corporations use short term paper and credit lines for funding day to day operations. They tend to not keep much cash on hand and use such credit lines for dealing with the normal cash flow issues.
You can find examples on almost every companies balance sheets. It is the equivalent of Duncan using a credit card to place an order from a supplier and then paying it back out of that months receipts. Now if he is paying his salary from the store, it really doesn't matter is the credit card is being used for paying the supplier or paying someones salary as long as it get paid back out of that periods receipts it is still short term debt incurred by the organization, used to fund operations.
Short term loans against a companies receiveables is a common example of such short term credit used to support operations.
Easier to tape a credit line for gaps in cash flow, then to have to keep sufficient cash reserves on hand to account for all possibilities. Especially if oyu are a high volume, low margin business, with fairly predictable periods between paying suppliers and other expenses, and AR receipts.
"(...) though I suppose if she shows up and doesn't drool on the podium she'll be declared the winner."
(*falls over, laughing*)
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