False Impressions.

Financial World, 1st December 2007 Financial markets are inherently unstable, says Andrew Smithers, and the view that corporate balance sheets are in good shape is an illusion. Financial markets are liable to shocks in many forms. Political and economic events are by...

Europe’s Banks Need More Capital.

The Nikkei Financial Daily (Market Eye Column)., 16th October 2007 England has just witnessed a run on a bank. Depositors, frightened of losing their money, queued outside the branches of the Northern Rock to withdraw their savings. The shock was tremendous. The UK...

Why balance sheets are not in good shape

Financial Times (Comments page), 30th August 2007 One frequent claim used to calm fears in the recent market turmoil has been that “corporate balance sheets are in good shape”. Judging from the published accounts of companies the claim is justified;...