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I don't think anyone has formulated a "knee-jerk negative reaction" to using credit. What are you talking about?
No, the company should shut down and return the resources they're in possession of to others who can wield them better. That's the drag.
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Nope. Not even remotely similar.
Or, put in that analogy: would it be a good idea to do that, if dude has been out of work for two years and is rolling over credit cards?