Bankruptcies Are Up 216% and We Aren't Even Halfway Through 2023

[mountaineer]

Bankruptcies Are Up 216% and We Aren't Even Halfway Through 2023
Story by Jena Greene • Yesterday 8:00 AM

Before the 2008 financial crisis, the U.S. led the world in economic growth. It accounted for over 1/3 of total global consumption growth. In mid-2007, U.S. household wealth hit a peak of $61.4 trillion. The average home value appreciated 124% between 1997-2006.

Overinflated confidence, consumption, and value went largely unchecked. Growth became the status quo. Though few regulators and investors noticed as it was happening, those who study history look back and see the early 2000s as a classic economic bubble, made worse by shoddy loans and deregulated banking.  ...

The most recent S&P data show 2023 corporate bankruptcies rising at an alarming clip. Data show 236 bankruptcies were recorded through the end of April 2023 (109 had been recorded over the same time period last year). UBS also found in a recent study that bankruptcies worth $10 million or more had a rolling average of about 8 per week.  ...

The Street, via MSN

[mountaineer]

FACTBOX-U.S. corporate bankruptcies at highest level since 2010
By Bansari Mayur Kamdar
 May 9, 2023

 (Reuters) - U.S. companies are feeling the heat of decades-high interest rates and sticky inflation, with several filing for bankruptcy protection as the era of easy money draws to a close. The tally of U.S. companies that have gone bankrupt so far in 2023 is higher than the first four months of any year since 2010, data from S&P Global Market Intelligence showed.  ...

Story goes on to list the most notable bankruptcies of 2023

[catfish1957]

Not really related to the thread but......

Hardly reported but markets are down 1-2% for the year, and when you take in a account 10%+ bidinflation and equities that are enumerated in $USD? 

This actually is a correction and a bear market. I don't think many realize that.

[Kamaji]

Business bankruptcies are still down pretty significantly over the medium and long term:  https://tradingeconomics.com/united-states/bankruptcies

[libertybele]

Not really related to the thread but......

Hardly reported but markets are down 1-2% for the year, and when you take in a account 10%+ bidinflation and equities that are enumerated in $USD? 

This actually is a correction and a bear market. I don't think many realize that.

So you don't think we have entered a recession @catfish1957 ?

[catfish1957]

So you don't think we have entered a recession @catfish1957 ?

In my mind, no doubt.  But the textbooks define it as sucessive quarters of GDP contraction, but it is kind of hard to to contract when the value of its benchmark keeps rising against tide of inflation.