Quote:
Originally Posted by beerptrol
Why tie up 17 billion of your own money, when you can use other peoples money at a low interest or cost to you
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That is EXACTLY right.
First in case anyone didn't know, it is currently very very cheap to borrow money. Try going for a car or house loan and they will trip over themselves to give you the loan at super low interest and give you all kinds of crazy incentives.
Also, big companies do this all the time. Here in Montreal there's a company called Bombardier. They are known for making snowmobiles but they also build passenger jets and other planes. They have an amazing scam going on. They borrow money from the government to bid on a contract, and borrow again to build the plane. The government awards them the money up front which is quickly invested and makes crazy interest. They also get crazy tax credits for being a job creator in Montreal. I wouldn't be surprised if they never spend a dime of their own money for anything. The loans are always insured of course meaning that neither they nor the government takes any real risk.
If you think this is nuts, just look into big oil and how they get and spend money. It'll make you sick.