We continue to get numbers that indicate that the U.S. economy is steamrolling in the wrong direction as we approach the most chaotic election season in our history. Needless to say, the performance of the economy is going to play a major role in the outcome of the election, because millions upon millions of Americans are really suffering right now. Homelessness has been growing at the fastest pace ever recorded, hunger and poverty are exploding, and we are in the midst of a cost of living crisis that doesn’t seem to have any end in sight. Unfortunately, there are signs that things will soon get even worse. For example, we experienced a “historic surge” of corporate bankruptcies during the first half of this year that was worse than anything we have witnessed since the first half of 2010…
There is a “historic surge” of corporate bankruptcies underway in the U.S., as debt-saddled companies struggle to adjust to the new era of high interest rates.
New figures published by S&P Global Intelligence show that 75 companies filed for bankruptcy in June, the highest number recorded in a single month since early 2020 at the height of the COVID-19 pandemic. That pushed this year’s total number of bankruptcies so far to 346, which is notably higher than comparable levels seen in the past 13 years.
Before this, the highest half-year figure recorded was in 2010, with 437 companies filing for bankruptcy from January through June.
During the first half of 2010, we were just coming out of the Great Recession.
Do you remember how painful things were in those days?
Sadly, I believe that what is ahead of us will be even more painful.
The unprecedented measures that our leaders took to prop up the economy worked for a while, but now cracks are starting to show all over the place.
And a lot more big businesses will go belly up during the months ahead.
Earlier today, I was quite saddened to learn that Big Lots is on the verge of bankruptcy…
Discount retail chain Big Lots said it will close up to 40 stores this year and may declare bankruptcy.
The Columbus, Ohio-based company wrote in a quarterly Securities and Exchange Commission filing it expected further operating losses and has “substantial doubt” it can continue as a functioning business.
Big Lots last month reported a net loss of $205 million in the quarter ending May 4, 2024.
When I lived in Virginia many years ago, I would shop at Big Lots quite a bit.
And it always seemed to be doing fairly well.
But now times have changed.
Today, most Americans have very little discretionary income. In fact, surveys have shown that the vast majority of Americans are living paycheck to paycheck at this point…
A 2023 survey conducted by Payroll.org highlighted that 78% of Americans live paycheck to paycheck, a 6% increase from the previous year. In other words, more than three-quarters of Americans struggle to save or invest after paying for their monthly expenses.
Similarly, a 2023 Forbes Advisor survey revealed that nearly 70% of respondents either identified as living paycheck to paycheck (40%) or—even more concerning—reported that their income doesn’t even cover their standard expenses (29%).
There is no way to spin those numbers in a positive manner.
Any way that you look at them, they are absolutely horrible.
The middle class is being ripped to shreds, and those that are running the system seem to be all out of answers.
Young adults in particular are having a very difficult time in this environment.
According to a survey that was recently conducted by Bank of America, almost half of all adult members of Generation Z “are relying on financial help from their parents and family members”…
A new survey by Bank of America finds that nearly half of adult members of Gen Z are relying on financial help from their parents and family members to get by.
The survey for Bank of America’s Better Money Habits team found that 46% of Gen Z are receiving financial assistance from their parents or other family members, a figure that declines to 30% for Gen Z non-students.
Have you noticed that so many young adults seem to be very bitter and very angry these days?
This is one of the big reasons why they are in such a foul mood.
Many of them were promised that life would be good if the studied hard, went to college, and did all the right things.
But now many of them are discovering that the pot of gold at the end of the rainbow was just an illusion.
Of course there is a small sliver of society that is still doing exceptionally well.
Flooding the system with trillions upon trillions of dollars has been very good for the financial markets, and those with lots of money in the financial markets have been living the high life.
In Jackson Hole, Wyoming, millionaires are complaining that the town is being ruined by all of the billionaires that are now moving in…
Millionaires once accused of ruining a gorgeous town in Wyoming now complain they are being driven out of the area by billionaires.
Jackson Hole has long been a popular vacation spot for celebrities including Ryan Gosling, Eva Mendes and Matthew McConaughey.
An influx of wealthy people sent house prices sky-rocketing and forced ordinary workers to live on the other side of the mountain on the Idaho-Wyoming border.
There are more billionaires in America today than ever before.
That is the good news.
The bad news is that there are more homeless people in America today than ever before, the ranks of the poor are growing very rapidly, and more Americans are falling out of the middle class with each passing day.
The wealthy may think that all of the wealth that they have piled up will insulate them from the unprecedented chaos that is approaching, but the truth is that a day of reckoning is coming for them too.
In the end, the entire system is going to completely and utterly fail, and those that believed that the party would last forever will be bitterly, bitterly disappointed.
Source: We Havent Seen A Historic Surge Of Corporate Bankruptcies Like This Since The Great Recession