Worthless DebtBloomberg has an alarming article on a new wave of financial industry hiring; bankruptcy advisers. While the report is European oriented the warning signs of a massive credit implosion are everywhere. The trend that struck me was the leveraged debt ratios used for buyouts. In 2003 LBOs carried debt equal to 4.8 times EBITA, 2004 5.1 times, Q1 2007 6.2 times. The basic theme here is "I'll give you too much for your company if you agree to take a worthless IOU." Big company, small real estate investor; it's all the same.