THUMBS DOWN: Red Ink Flows Freely

September 16, 2008
Physician's Money Digest, February28 2003, Volume 10, Issue 4

WorldCom, Global Crossing, Conseco,UAL, Adelphia, Kmart—somewere victims of corporate hanky-panky,some were done in by plainmismanagement. Whatever the reason,this past year was a crusher forseveral of the nation's largest companies,which resulted in some ofthe largest bankruptcy filings in history.Physician-investors beware—thisyear doesn't promise to be any better.With a limping economy hamperinggrowth, corporate credit analystspredict that 8% of those companieswith poor credit ratings willgo under this year. In already-troubledsectors like telecom and software,bankruptcy may claim 1 in 5.Other sectors under fire includefinancial services, airlines, textiles,electric utilities, and food makers.