Naked Capitalism has the article Crash of Outsourcing Giant Capita with 70,000 Employees Globally Sparks New Panic.
Since the sudden downfall of the British infrastructure giant Carillion two weeks ago, investors’ nerves in London are frayed. And short-sellers, scanning the horizon for their next prey, seem to have found it.
Its name is Capita. It is one of the UK government’s biggest outsourcing firms with contracts to provide services to government entities, such as NHS cleaning, school dinners, and prison maintenance. It has 70,000 employees in the UK, Europe, South Africa, and India.
I have been expecting a huge market correction for a few years now. I also figured that the recent surge of the stock market was a bubble based on corrupt practices in the world financial system. I just didn’t know exactly where the corruption would be exposed. I was unaware of this particular situation in England.
I can hardly wait for the US stock market opening on Monday.