The financial crisis is going global and businesses which just managed to get by before the crisis are now coming down. Reports like the one found on Times Online today about bankruptcies in Britain is just one example of one nation being affected by the global crisis.
The article goes on to read: “The number of companies going bust in the UK soared 26% between July and September. The steep rise in company collapses was blamed on a “toxic combination of markedly slowing demand, elevated input costs and very tight credit conditions”.” Unfortunately these conditions are felt in many many nations around the globe and not just the UK.
In another article we find how the Bank of Spain is telling banks around the country to start taking measures when providing for standard bankruptcy or debt gone bad statistics. All banks take into account that a certain percentage of loans given, won’t be paid back. The current economic climate is a turmoil of customers spending less, companies not paying suppliers, suppliers unable to survive and somewhere along the line here or there a company gone bust. Examples like this can be seen all around and things aren’t looking like they will get better anytime soon.
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