RANsquawk European Morning Briefing - Stocks, Bonds, FX etc. – 25/08/10

Comments

[Sudden Debt]

Tyler, I was just talking to some accountants and they showed another bubble that is actually SO EVIDENT, everybody just missed it. This is what they told me: For 2 years now, companies have been saving on expenses, cutting down stocks, saving on everything they could. Just to keep the company floating. And with the few orders they had, they got by. But now there was talk about a recover and a lot of companies put their last money to work to build up new stocks. These stocks aren't that great, but they really consumed most of the money left. But orders didn't hold on to the pick up and went down again. The real problem now is: Companies have stock which will take to long to liquidate and no more money in reserves! Here in Europe they also told me that there will be a big announcement about companies shutting down as the end of the legal holiday comes to a end (4 month slow legal processing due to yearly tax controls and the summer). They say it's going to be hughe! They predict the number for this summer to be AS BIG AS ALL OF 2009! Als, there are a lot of companies that sell good which retailers, producers have now put into stock. The orders will registered as ordered and billed. But there are a hughe number of unpaid bills! CHECK THE NUMBER OF DAYS THAT IT TAKES TO GET YOUR INVOICES PAID! IT IS HUGHE! Some countries are now at 97 DAYS! The banks aren't lending and now a lot of companies are TAPPED OUT! And these guys where not kidding. They had the look like they where in dire need of prozac. Pick this story up and do your homework! This is a death stroke for the European economy!

[hellboy]

Would be interesting to get some more info on this...

[Herry12]

Thanks for such a great post and the review, I am totally impressed! Keep stuff like this coming!...
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