If you read Michael Shedlock, you are seeing a continual tide of companies that operated on credit sieze up and sink, since credit issuers are returning to sanity in their standards for who gets money and who doesn't.
For a long time, it has seemed strange to me that a company can expand and call itself profitable, while taking on huge piles of debt. If you can't expand your company based on capital, how are you not losing money by expanding? Do you really think it is a positive good to expand, regardless of a net increase in your liabilities vs. your assets? Some companies did, apparently. I always thought it was fiscal insanity.
Well it turns out I was right. The economy of the world is tanking because of huge companies that expanded with a continual stream of more borrowing. The stream is drying up and the expansion will reverse.
Go figure. I guess being a gen-u-wine accountant doesn't help if you are crazy.
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