Avedon Carol at Eschaton: Blowout government

At the newly merged Electrolite/Making Light from Patrick Nielsen Hayden and Teresa Nielsen Hayden, there's a hot thread about the filibuster deal by Patrick in which Teresa leaves this comment:

Huh. I've suddenly realized that I know the form of this scam: it's a blowout.

Here's the deal: Your basic blowout starts when crooks take control of a legitimate business that has a good credit rating, most often by entering into an agreement to buy it from its original owners, and possibly making a token initial payment.

In the next phase, the crooks start placing large orders for easily liquidated merchandise with the business's regular suppliers, and also with new suppliers who think they've acquired a valuable new customer. And since the orders are coming from an established business with a good credit rating, the suppliers don't ask for payment up front.