sony cuts profit forecast

[Ail]

tuoyo said:

Ail said:
Quite amazing the number of people that comment stuff without reading the original post or not having a clue about economy....

The best comments are still those of the kind :
- They are cutting profit
=> They are going bankrupt then ?
ROFL

Usually the first 2 steps before going bankrupt are :
- Loose money on a regular basis, Sony isn't announcing they are going to loose money
- Run out of cash and being unable to borrom more. You can loose cash for years and still not go bankrupt if you have decent reserves or access to huge credit....

Actually you can go bankrupt without ever losing money because you manipulate your accounts (such as happened with Parmalat and I think Enron). Also Arthur Anderson died without ever having lost money due to the fact the nature of their business means they rely on their reputation and the Enron paper shreading issue meant their reputation was damaged beyond repair.

Anyway we know Sony can't go bankrupt.  That's impossible.  There would have to have been too many negligent decisions on a massive scale for that to happen.

 

 

That's rhetorical :)

Enron was loosing money for the last few years but hiding it through some book fixing and 'creative' accounting...

 

But yes, I suppose you could go bankrupt by borrowing huge amounts of money while being profitable and suddenly being unable to repay those loans...