I think you will admit that we are in the middle of one major crazy financial mess.

Although Magic Formula Investing does a good job of avoiding firms with poor balance sheets, sometimes firms with too much debt will slip through. Here are 5 current ones and how their financial situation could affect shareholder returns.

Weak demand at the Italian bond auction is causing an uproar that the Euro Zone debt crisis is far from being over. Adding more fuel to the fire, we have an on-going bickering in the Euro Zone on how to proceed with the Greek bailout. Finland, Austria, the Netherlands, Slovenia and Slovakia are demanding collateral from Greece for more bailout funds.

The credit downgrade and debt ceiling aftermath highlight a much more serious problem -- a jobs and wages problem -- that Mr. Market is finally waking up to. Editor Justice Litle explains...