Tag: debt

May 31, 2020 admin123@ No comments exist

Zombie Exposed by Covid-19: zombie firms that are more debt than alive.  Low interest rates & easy consumer credit kept them teetering on the edge of bankruptcy but undead, despite relentless price pressure.  Lockdown + harsh recession = curtains.  A shakeout will be painful for workers, suppliers & clients, as the dead men stop walking  …

January 14, 2020 admin123@ No comments exist

Longest Longest & calmest ever US bull market turns 11 years old in June 2020.  Will it last?  Probably, as American consumers are in great shape.  Their debt relative to income is lowest in 40 years, their savings rate is high, real incomes are rising & unemployment is at a 50-year low.   No sign of…

November 22, 2019 admin123@ No comments exist

Almighty The US dollar remains almighty.  It makes up 2/3 of international debt & 2/3 of global currency reserves.  Oil & gold are priced in dollars.  Kidnappers of ships & people demand dollars.  European firms buy European planes in dollars.  Even when the US is the source of the problem, as in the 2008 global financial…

September 23, 2019 admin123@ No comments exist

Over-program “Don’t just book it, Thomas Cook it” worked when travellers over-programmed & wanted to know what they were going to do in advance.  Since 1841, the world’s oldest travel firm offered such tours, but didn’t adapt enough for what’s wanted now – unexpected experiences & adventures.  In an online world, 563 shops and £1.7bn ($2.1bn)…

September 4, 2019 admin123@ No comments exist

Insolvent Die hard.  From a decade low in 2015, UK insolvencies have shot up 20%.  Out of 2018’s 17,439 corporate failures, construction was hit hardest with 3,940 insolvencies, despite the demand for new homes. Then admin/support firms (3,346), retail (2,608) & manufacturing (2,092).  Causes include Brexit uncertainty, business rates, pension enrolment & unsecured debt Guessed the…

Owe

June 10, 2019 admin123@ No comments exist

Owe If you owe it to yourself, do you really owe it?  After years of quantitative easing (“printing money”), the world’s central banks own 1/5 of their respective countries’ debt. But central banks are owned by their States.  So, the owners of the government debt are the governments themselves.  Funny money Guessed the Word?   …

May 20, 2019 admin123@ No comments exist

Loan shark Beware lenders using the words  “cash advance” instead of “loan” in documents.  This is designed to avoid usury laws and licensing requirements.  Consumer laws protect individuals from being fleeced.  But there’s no help for firms who borrow under deals which unfairly enrich the lender Guessed the Word?         Series 42 (2/8)   …

February 5, 2018 admin123@ No comments exist

Company Shareholders aren’t personally liable for company debts (The Limited Liability Act 1855). Companies House has registered British companies since 1844. The oldest still trading is The Ashford Cattle Market Co. Ltd from 1856 Guessed the Word?       Series 19 (3/7)       [pic: Pixel-mixer]

November 3, 2017 admin123@ No comments exist

Junk rating Financial crisis couldn’t have occurred without the rating agencies.  89% of Moody’s 2007 investment-grade securities later classed as junk.  Yet S&P, Moody’s and Fitch still control 96% of global market, and make debt-issuer pay for their ratings. Guessed the Word?       Series 11 (1/4)        [photo: Alexas_Fotos]