Kerry, Iraq, Saddam & Bin Laden - it's all a mess

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"That $158,000 number was as of 8/23"

So how did they pay for a $550,000 ad with 1ess than $200,000. Sounds like that figure was wrong when it was posted, and a lot more wrong now.

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nicky g...

You can buy ads on credit . I run media campaigns for my business 30-45 days out and am subsequently billed on credit at a later date.

Knowing that they'd be able to raise money with publicity (and then run more ads with that money) gained from the first run of ads, they are able to confidently buy on credit. They've reportedly taken in the $1+ million figure from website donations alone.

[nicky g]

OK I see your point. Nevertheless that figure is clearly far wide of the mark now.

[nicky g]

That said, and I am as interested in this from a finance as a political point of view, how does a group with 160,000 bucks get 550,000 dollars in credit?

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They use Saudi Prince Bandar as a credit reference, naturally.

[nicky g]

I would have thought they would need some kind of guarantor.

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They use Saudi Prince Bandar as a credit reference, naturally.

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I got a chuckle out of that one cardcounter...

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Which is much easier than having to drive by the White House to pick it up.

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I would have thought they would need some kind of guarantor.

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They might have had some leverage like that, but more likely they saw this Swift Boat Vets group as a sure thing that would drum up controversy and create interest. Since donations to 527's are essentially unlimited and tax-exempt...the money can come from anywhere.

If I'm running a radio station or local tv station, I'm pretty sure that these folks will be able to pay their bill next month, especially since they have a vested interest in running more ads.

People will extend credit on a handshake if the folks involved are known and respected...as a matter of fact, most business was done this way as recently as the 1970s.

[nicky g]

Maybe... I would have thought banks tend to be more conservative than that. Anyway, presumably that will become apparent eventually.

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The tv station (or cable company) itself extends the credit in most of these situations. They bill regular clients post run (meaning the ad runs first).