I posted this no longer than an hour ago in another thread that covers this topic, so i'll just copy/paste.
Anytime now, on the news they are reporting about Thomas Cook going under
Thomas Cook down 75% to 10.20p
Shares in Thomas Cook have closed down 75% after it announced it was in talks with banks about increasing the amount of money it can borrow. The
travel firm said it had seen a "deterioration of trading", due to political unrest in Egypt and Tunisia and floods in Thailand. It also said it
would delay releasing its full year results until it had concluded the discussions.
This will effect other travel agents, with Greece and Egypt, popular tourist destinations, in unrest. And as we see all over the world, unrest and
instability is ripe. In Europe, it has yet to go into full swing, but it is only a matter of time before Italy goes under, and with that Spain and
Portugal, other big tourist destination.
Mix that with the people who have very little money to treat themselves to a holiday, the obvious outcome is a major hit on the tourism industry,
which in turn will hit the travel (airline) companies, and so on.
Im not the one for predictions, but I reckon that all will be well in 2011, because of the optimism of business's around Christmas time, but when the
beginning of 2012 kicks in, and they realise they did not make as much money as they predicted (which they call a "loss", even though they didn't
"loose" anything, just didn't make as much as they hoped) money will be coming out left right and centre of the market, and then the news will
really hit home.
