lunes, 9 de febrero de 2009

Article I chose

Article I chose:
15 Companies That Might Not Survive 2009
With consumers shutting their wallets and corporate revenues plunging, the business landscape may start to resemble a graveyard in 2009. Household names like Circuit City and Linens 'n Things have already perished. And chances are, those bankruptcies were just an early warning sign of a much broader epidemic.
Moody's Investors Service, for instance, predicts that the default rate on corporate bonds - which foretells bankruptcies - will be three times higher in 2009 than in 2008, and 15 times higher than in 2007. That could equate to 25 significant bankruptcies per month.
We examined ratings from Moody's and data from other sources to develop a short list of potential victims that ought to be familiar to most consumers. Many of these firms are in industries directly hit by the slowdown in consumer spending, such as retail, automotive, housing and entertainment.
But there are other common threads. Most of these firms have limited cash for a rainy day, and a lot of debt, with large interest payments due over the next year. In ordinary times, it might not be so hard to refinance loans, or get new ones, to help keep the cash flowing. But in an acute credit crunch it's a different story, and at companies where sales are down and going lower, skittish lenders may refuse to grant any more credit. It's a terrible time to be cash-poor.
That's why Moody's assigns most of these firms its lowest rating for short-term liquidity. And all the firms…
http://finance.yahoo.com/news/15-Companies-That-Might-Not-usnews-14279875.html

My summary of the article:
This article talks about an important part of industrial engineering; wich is economy. Due to different factors, the United States is suffering from an economic crisis, and this report shows some of the reasons for witch some businesses may close.
I think it’s quite informative and the timing for its release was quiet appropriate.


Paragraphs I chose:
1) With consumers shutting their wallets and corporate revenues plunging, the business landscape may start to resemble a graveyard in 2009. Household names like Circuit City and Linens 'n Things have already perished. And chances are, those bankruptcies were just an early warning sign of a much broader epidemic.
2) But there are other common threads. Most of these firms have limited cash for a rainy day, and a lot of debt, with large interest payments due over the next year. In ordinary times, it might not be so hard to refinance loans, or get new ones, to help keep the cash flowing. But in an acute credit crunch it's a different story, and at companies where sales are down and going lower, skittish lenders may refuse to grant any more credit. It's a terrible time to be cash-poor.

Sentences I chose:

Paragraph 1)
1.- The business landscape may start to resemble a graveyard in 2009.
2.- Household names like Circuit City and Linens 'n Things have already perished.
3.- Those bankruptcies were just an early warning sign of a much broader epidemic.

Paragraph 2)
1.- Most of these firms have limited cash for a rainy day
2.- It might not be so hard to refinance loans
3.- It's a terrible time to be cash-poor.

Words I chose:
Paragraph 1)
Sentense 1.-
word 1: business: noun
word 2: landscape: noun
word 3: graveyard: noun
Sentense 2.-
word 1: household: noun
word 2: have: verb
word 3: perished: verb
Sentense 3.-
word 1: bankrupcies: noun
word 2: early: adverb
word 3: of: preposition

Paragraph 2)
Sentense 1.-
word 1: most: adjective
word 2: firms: noun
word 3: for: preposition
Sentense 2.-
word 1: might: verbal auxiliary
word 2: not: adverb
word 3: hard: adjecive
Sentense 3.-
word 1: terrible: noun
word 2: time: noun
word 3: poor: noun

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