July U.S. Corporate Bankruptcy Filings Hit Highest Monthly Total In 5 Years

[TangoNoCash]

Trump supporters are easily fooled by smoke and mirrors and he provides them in abundance.

 

[Airyaman]

Trump supporters are easily fooled by smoke and mirrors and he provides them in abundance.

"We're spending more money than ever, so we've got to raise taxes on lower income Americans (via tariffs)!"

 

[Airyaman]

 

[Visbek]

Fact, interest rates under Obama remained under 1% even after the economy recovered from the "Great Recession".

Uh, hello? How does agreeing with me disprove what I'm saying?

Here's the Fed Overnight Rates for the past several decades. Notice how rates were in the 5% range for most of the 90s; how they went back up to 5% after the 2000 recession; how the Fed was inching them back up in 2019.

The only reason for those near-zero rates is because:
- In 2008, Republicans thwarted fiscal stimulus, so the Fed had to pull out all the stops.
- The COVID crash was so bad that the Fed immediately did everything it could.

1% is not "normal." And again, the Fed kept those rates low far, far too long.

Fact, companies are going out of business because they can't pay the interest on their debt.

No, that's not a "fact." It's an egregiously and self-servingly selective explanation.

Fact! companies are also going out of business because tariffs are increasing their prices, causing uncertainty, and softening consumer demand.

For example, Del Monte imports steel for its cans; Dear Leader's tariffs increased the cost of that steel by 50%.

Or: Numerous US alcohol producers are suffering due to retaliation for Trumpie Tariffs. Sales of American spirits in Canada dropped 66% this year, exclusively due to reactions to the tariffs. There's no question that is hurting US firms.

We should also note there are lots of otherwise normal factors too, such as demand for products falling.

Why aren't you acknowledging that at all?

 

[roberthughey]

Uh, hello? How does agreeing with me disprove what I'm saying?

Here's the Fed Overnight Rates for the past several decades. Notice how rates were in the 5% range for most of the 90s; how they went back up to 5% after the 2000 recession; how the Fed was inching them back up in 2019.

The only reason for those near-zero rates is because:
- In 2008, Republicans thwarted fiscal stimulus, so the Fed had to pull out all the stops.
- The COVID crash was so bad that the Fed immediately did everything it could.

1% is not "normal." And again, the Fed kept those rates low far, far too long.




No, that's not a "fact." It's an egregiously and self-servingly selective explanation.

Fact! companies are also going out of business because tariffs are increasing their prices, causing uncertainty, and softening consumer demand.

For example, Del Monte imports steel for its cans; Dear Leader's tariffs increased the cost of that steel by 50%.

Or: Numerous US alcohol producers are suffering due to retaliation for Trumpie Tariffs. Sales of American spirits in Canada dropped 66% this year, exclusively due to reactions to the tariffs. There's no question that is hurting US firms.

We should also note there are lots of otherwise normal factors too, such as demand for products falling.

Why aren't you acknowledging that at all?

I posted this yesterday.

------------------

Dive Insight:​

Finance leaders of the companies tracked by S&P have been increasingly turning to the courts for bankruptcy protection since 2022 when interest rates began to rise as the Federal Reserve sought to combat inflation. They’ve risen from 373 in 2022 to 634 in 2023, touching 688 last year.

So far this year, the distress has been concentrated in industrial and so-called consumer discretionary companies which accounted for a combined 107 bankruptcies, followed by healthcare firms (27) and corporations in the consumer staples sector (19).

Among the largest firms to file bankruptcy petitions so far this year were craft retailer Joann, which listed debt of about $2.4 billion and assets of approximately $2.2 billion, and semiconductor manufacturer Wolfspeed, reporting approximately $6.7 billion in total funded debt as of its Chapter 11 filing on June 30. Just one week after the filing, Wolfspeed appointed industry alum Gregor van Issum to take the finance reins, CFO Dive previously reported.

US corporate bankruptcies hit 15-year H1 high: S&P

The petition volume this year through June is on pace to make 2025 one of the busiest years for bankruptcy filings in over a decade, according to an S&P Global report.

www.cfodive.com

 

[gbg3]

Bankruptcies are up, layoffs are up, jobs are down and CEO's are pointing to tariffs and economic uncertainty cause by a lack of clarity of WH economic policy as the reason. The firing of the head of the BLS and the constant threats against the Fed just adds to the uncertainty. Why is is so hard to look at all the facts and recognize that these ideas of Trump's may not be working out so well? I can't figure out whether it is an emotional need to defend and protect Trump or an equally emotional need to never agree with anyone on the left. If this was Biden the right would be claiming the economic sky was falling and that's the truth.

An "emotional need" seems to be yours. Emotionally, you NEED the economy to tank and Trump to fail, because you just hate him so much that any other outcome would be impossible for you to figure out how to (emotionally) handle. And that need seems to be so great in you - that no matter what happens with the economy - you'll say (and maybe even convince yourself) it's bad news.

 

[Callen]

An "emotional need" seems to be yours. Emotionally, you NEED the economy to tank and Trump to fail, because you just hate him so much that any other outcome would be impossible for you to figure out how to (emotionally) handle. And that need seems to be so great in you - that no matter what happens with the economy - you'll say (and maybe even convince yourself) it's bad news.

......and I'm emotional ? OK.....

However, to the subject at hand, you could not be more mistaken. Why would I want the economy to tank ? Unlike Trumpers I have no wish to hurt myself and my family financially for some political purpose. If anything I wish there would be just enough signs of weakening to wake up American voters to what Trump is doing. I want the economy to thrive and the only way that happens is if Trump fails.

 

[gbg3]

I want the economy to thrive and the only way that happens is if Trump fails.

OMG, I can't stop laughing at this sentence. Nothing at all crazy or emotional about this sentence.

 

[Callen]

OMG, I can't stop laughing at this sentence. Nothing at all crazy or emotional about this sentence.

It's neither emotional nor crazy, it's quite rational . The opinion of most economists, other than Trump loyalists, is that the economy of the US and her major trading partners will not thrive under Trump's economic policies. So he needs to fail in his personal goals so economies can flourish as they did pre Trump.

 

[Greenbeard]

An "emotional need" seems to be yours. Emotionally, you NEED the economy to tank and Trump to fail, because you just hate him so much that any other outcome would be impossible for you to figure out how to (emotionally) handle. And that need seems to be so great in you - that no matter what happens with the economy - you'll say (and maybe even convince yourself) it's bad news.

There’s no joy to be had in Trump’s stagflation, only sorrow.