Chart of the Day: Economic Storm Clouds Building – Bankruptcies Rise to 2008 Levels

Contact Your Elected Officials
Right Wire Report Header

Despite what the Biden administration has been saying about the economy, growing ominous storm clouds a growing. Meanwhile, Springfield, VA, had a recent visit from President Joe Biden.

The visit was announced a few days prior at a White House Press briefing for an undisclosed Springfield location. Press Secretary Karine Jean-Pierre shared that Biden chose our nearby suburb to deliver a major speech on the economy to steamfitter union workers who had benefited from his economic plan. Below is his address if you can manage to get through it.

However, the reality on the ground paints a different picture. The Fed has capitulated, and signs of reality are starting to sink in about dubious job numbers and how the Fed pivot to lower rates is nigh. But there are other ominous signs as well about the economy.

The US has transitioned from more than a decade of quantitative easing to more recent quantitative tightening. QT will remain until the Federal Reserve is finished squashing inflation. However, such a massive paradigm shift in markets might result in a period of deleveraging among highly levered firms that were able to flourish during the QE era.

New Bloomberg data shows large companies (at least $50 million of liabilities) filing for bankruptcy topped 20 this month, the highest in any other January dating back to 2010. Back then, 25 filings were seen as the economy was still reeling from the aftermath of the GFC. See this in the chart below and learn more here.

This year, some of the most notable bankruptcy filings have been festive retailer Party City Holdco Inc, mattress maker Serta Simmons Bedding LLC, and cryptocurrency lender Genesis Global Holdco. There could be turmoil in the lowest-rated – CCC-rated credit space and hidden risks if a bankruptcy wave takes off from here. As shown below, distress debt is piling up.

The reality is that business is struggling because the consumer is increasingly tapped out. In December 2022, the personal saving rate in the United States amounted to 3.4 percent, down from 7.5 percent in December 2021. The personal saving rate is calculated as the ratio of personal savings to disposable personal income. See this in the chart below and learn more here.

The consumer has not even recovered half of its trend line savings rate after the contortions of the Covid “pandemic.” Even though some investors don’t believe a hard landing is in the cards this year. The latest surge in large firm bankruptcies is an ominous sign of trouble ahead.

By Tom Williams

Right Wire Report
Right Wire Reporthttps://rightwirereport.com/
Right Wire Report was a group of concerned citizens who took action to promote traditional values and work for a better America.

The Real Reason Why the Left is Unhinged

Nine out of thirteen of the original states required you to be a Bible believing Christian to serve in government at the time of the founding.

The Sacrificial Lambs of the Riyadh Standup Scene

Which is the greater injustice: jailing political dissidents, or millions dead from pharma crimes with no accountability for those responsible?

No Kings Exposes Odd Things!

The “No Kings” protests held around the nation are not grassroots spontaneous people’s protests but are highly organized events by paid provocateurs.

President Trump Needs Much Better Protection

President Trump faces threats from foreign adversaries and domestic radicals prone to violence, people suffering from severe “TDS.”

Science Has Finally Come For Transgenderism

British biologist Richard Dawkins said “trans women are men,” calling transgender ideology a movement that undermines biological truth.

Texas Appoints Higher Education Ombudsman to Enforce DEI Violations

Texas is moving to enforce bans on DEI practices in universities and potentially restrict college courses focused on gender and race.

House Judiciary Chair Refers Ex-CIA Director John Brennan for Criminal Prosecution

House Republicans referred ex-CIA Director John Brennan to AG Pam Bondi for prosecution over the 2016 probe into alleged Russian–Trump collusion.

FBI Has Arrested 28,000 Violent Criminals Since Jan. 20: Trump

President Trump praised the FBI for doing an “incredible job,” citing thousands of arrests and major disruptions of criminal activity nationwide.

White House Ballroom Project Breaks Ground

Demolition began Oct. 20 on the White House East Wing to make room for Trump’s planned ballroom, with parts of the structure already removed.

Trump Calls off Meeting With Putin, White House Says

White House says Secretary Rubio and Russia’s Lavrov had a productive call; no further meetings or Trump-Putin talks are planned soon.

President Signs Rare Earth Agreement With Australia’s PM

President Trump hosted Australian PM Albanese at the White House, where both leaders signed a new agreement on rare earth mineral cooperation.

Trump Says Insurrection Act Is ‘Strongest Power a President Has’

President Trump detailed plans to invoke the Insurrection Act to address rampant crime, calling it the “strongest power a president has.”

Army Corps of Engineers to Pause $11 Billion in Projects During Shutdown: Vought

Russ Vought, director of the White House’s OMB, has added to the growing pile of federal projects paused during the government shutdown.
spot_img

Related Articles

Popular Categories

MAGA Business Central