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Businesses think about what to keep in stock quite a lot and often the answer is "as little as possible." Carrying inventory costs money, more when interest rat
by skybrian 4y ago
Businesses think about what to keep in stock quite a lot and often the answer is "as little as possible." Carrying inventory costs money, more when interest rates rise, and it's potentially wasted if it doesn't sell.
There's a tradeoff because prudent disaster preparation is expensive, but worth it if the disaster happens. The question is, who will pay for it? Often, the government.
- meltyness 4y agoBut that's another illusion mirroring the banking structure -- fractional reserve -- that some 90% of your assets should be generating rent, and 10% in reserves. If banks pick winners, everything becomes a bank.