The number of bankruptcies in large US companies has significantly increased, with 2010 companies applying for bankruptcy in May 2024, the second-highest number since 2010.
This trend indicates economic weakness and raises concerns about a recession, especially for companies producing goods that consumers want but may not necessarily need, as costs decrease.
In 2023, 637 bankruptcies were declared, the highest number in 14 years, and in May 2024 alone, 62 companies have officially declared insolvency.
US bankruptcies are riding rapidly:
275 large companies have declared bankruptcy through May of this year, the 2nd highest since 2010.
Over the last 14 years, only 2023 saw a higher count of bankruptcy registrations, at 277.
In May 2024 alone, 62 firms have gone bankrupt, the…
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Economic indicators point to significant issues – GDP growth slowed to 1.3% in the first quarter of 2024, inflation has been above 3% for 38 months, the government deficit is $2 trillion, and the national debt is $34.6 trillion.
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Achieving a “soft landing” remains a challenge for the Federal Reserve, given the delayed effects of interest rate hikes and balance sheet reductions.
The sharp increase in bankruptcies, along with record credit card debt of $1 trillion and rising delinquency rates, further complicates economic prospects.
Without additional government intervention, a recession appears increasingly likely, prompting businesses and consumers to prepare for challenging times ahead.
