Debt = Bad
Inevitable that once you load a business up with debt you give it a finite life. Let's face it Maplin isn't unique it's just one of the latest dominoes to fall in the high street.
Years of super-low interest rates have encouraged businesses and consumers to borrow to the hilt. Why not, it's almost free? I know people with unbelievable mortgages, loads of stuff on tick, several maxed out credit cards but outwardly they look as though they are doing alright mostly, and in fact they themselves do really believe they are doing alright - it's become a normal way of life. They are just about keeping going so long as nothing happens.
Everything's fine so long as the economy can keep the plates spinning but now that interest rates are going back up (expect yet another rate hike from US Fed real soon now) the zombie companies'with fingernail existence on borrowed money will finally keel over, jobs will go, people will stop paying their bills, and we're going to see an extremely nasty fertiliser/turbine contact scenario.
Sorry this is a bit shouty but I am astounded we made it this far even.
Biting the hand that feeds IT
