Thursday, March 25, 2010

Are Inventory Buildups Meant For Government or For Consumers?

Quotes of the day are occasionally featured in this space, to put a spotlight on outstanding words of wisdom. However, today we will quote what may seem as an outlandish idea.

This from Finance Asia, ``Inventory is a crucial element to the global recovery because of the need for the corporate sector to spend in order to alleviate the government sector from the existing debt bubble."

Put yourself in the shoes of the producer-corporate president, entrepreneur, proprietor or etc... and reply to this question:

Do you spend on building up inventory to "alleviate the government sector" and thereby assure yourself of capital losses? Or do you spend on inventory in the expectations to profit from sales to customers?

It's a wonder, is such an observation reflective of the activities from another planet? Or is this a typo error?


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