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Distressed Companies Surge 60% In Second Q

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U.K. `Distressed' Companies' Average Debt Surges by 60% in Second Quarter
By Fergal O’Brien - Jul 8, 2010
The average debt of U.K. companies in “financial distress” surged 60 percent in the second quarter, according to a report by Begbies Traynor.
Average debt among the companies rose to 545,000 pounds and total liabilities “at risk of default” increased to 69.5 billion pounds, the England-based insolvency specialist said in a statement today.
The increase in average debts “suggests that larger companies are now experiencing difficulties, implying that the post-recession stress is migrating out of the small-and-medium sector,” Begbies Traynor said. This “potentially threatens greater job losses; indicating the continued fragility of the U.K.’s weak economic recovery.”

The news behind the news seems to tell a very different story. The exuberant stock buying frenzy of the last few days has been based on talk that the double dip is not going to happen and that the problems associated with debt has evaporated overnight. It seems that is not quite the whole story and may be more to do with trying to "think the problems away" than facing the reality of what this nation has done during the Brown years or imprudence.

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They are going to PRINT.................simple as that. They try to cut spending................till the riots occur........then to the press!

RB, your got 20% VAT, big jumps in unemployment, debt ...........which could never be serviced even in the "good" (Brown) times............the final nail will be Rates...by 2012.




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