If MS want's to win they should just buy Sony and close down it's operations!blakjedi said:
Or maybe just cancel PS
If MS Really wants to win this generation...
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Or maybe just cancel PS
I appreciate that. The question is how do they manage to accrue such debts? You invest in a company in the expectation that you'll make more money in the long run. People/banks/companies have invested some $300 billion in company x, who's turning over maybe $5 billion profit. If the lenders took ALL that money, it'd be 60 years before they even broke even, let alone made a profit!xbdestroya said:Shifty Geezer said:
Hmmm.... I think some people are confused about debt. That's like saying, how does the US government survive? (and that's a different topic, so let's not go to global economies...) 8)
Those are all profitable companies with long-term debt. The way the debt effects them, is that they have to service, or pay interest, on their debt. So all of those companies above are doing quite fine with that debt - basically, they make more than they spend, even after paying interest on their bonds, loans, etc...
Though I also understand that companies lend money to companies, like countries. So GE might have borrowed $300 billion from GM, who borrowed $300 billion from Citigroup, who borrowed $300 billion from GE. So they're all in debt, but not, in a way. Is this the case with these companies, or are they paying returns on investors who'll never see a profit?
Pozer said:Alot of xbox1 owners agree with that statement
Hehe, I have always thought that. The game is so ambitious in terms of design, I'd like to see it be as ambitious technologically. I'd have preferred to seen it coded specifically for Xbox, though that might be a little selfish of me (and the rest of the smaller Xbox userbase)
I'd agree that generally, though, it's hilarious watching fanboys change stripes going into next gen..
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Shifty Geezer said:
Lending money to a company is like lending money to bank (your bank account for example) They pay you interest, and more so than a bank, because it involves higher risk.
Shifty Geezer said:I appreciate that. The question is how do they manage to accrue such debts? You invest in a company in the expectation that you'll make more money in the long run. People/banks/companies have invested some $300 billion in company x, who's turning over maybe $5 billion profit. If the lenders took ALL that money, it'd be 60 years before they even broke even, let alone made a profit!xbdestroya said:Shifty Geezer said:
Hmmm.... I think some people are confused about debt. That's like saying, how does the US government survive? (and that's a different topic, so let's not go to global economies...) 8)
Those are all profitable companies with long-term debt. The way the debt effects them, is that they have to service, or pay interest, on their debt. So all of those companies above are doing quite fine with that debt - basically, they make more than they spend, even after paying interest on their bonds, loans, etc...
Though I also understand that companies lend money to companies, like countries. So GE might have borrowed $300 billion from GM, who borrowed $300 billion from Citigroup, who borrowed $300 billion from GE. So they're all in debt, but not, in a way. Is this the case with these companies, or are they paying returns on investors who'll never see a profit?
Those huge debts are secured against tangible assets. It's the cashflow that's important and allows you to do things.
Shifty Geezer said:I appreciate that. The question is how do they manage to accrue such debts? You invest in a company in the expectation that you'll make more money in the long run. People/banks/companies have invested some $300 billion in company x, who's turning over maybe $5 billion profit. If the lenders took ALL that money, it'd be 60 years before they even broke even, let alone made a profit!xbdestroya said:Shifty Geezer said:
Hmmm.... I think some people are confused about debt. That's like saying, how does the US government survive? (and that's a different topic, so let's not go to global economies...) 8)
Those are all profitable companies with long-term debt. The way the debt effects them, is that they have to service, or pay interest, on their debt. So all of those companies above are doing quite fine with that debt - basically, they make more than they spend, even after paying interest on their bonds, loans, etc...
Though I also understand that companies lend money to companies, like countries. So GE might have borrowed $300 billion from GM, who borrowed $300 billion from Citigroup, who borrowed $300 billion from GE. So they're all in debt, but not, in a way. Is this the case with these companies, or are they paying returns on investors who'll never see a profit?
It's like this, either the company can borrow money from the bank, just like you and me, and pay it back incrementaly throughout the life, with interest, or they can sell bonds on the open market. In that case, the individual investor, and larger institutions, have the opportunity to purchse the debt (just like a government bond) and be payed nominal interest on that debt every month/year, as well as receiving their borrowed sum back when the bond matures. You can also sell your bonds to other people, etc.
Sony's credit rating, though recently lowered I believe post-MGM, is actually very very good.
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