As the coronavirus pandemic continues to wreak havoc on the U.S. economy, bankruptcies are on track to hit the highest level in at least 10 years according to figures compiled by S&P Global Market Intelligence.
According to the analysis, which only includes public companies and private companies with public debt and/or assets/liabilities over $2 million or $10 million, respectively, 424 companies announced their bankruptcy through August 9 this year, up 22 percent from the same period last year and the highest level since 2010.
Consumer-focused companies were most affected by the pandemic, with more than 100 of them filing for bankruptcy this year. Due to the lockdown, the already battered retail sector was hit by a wave of bankruptcies that swept away household names such as J.Crew, Ascena Retail and J.C. Penney.
Having an economy open doesn’t equate to economic health.
We’re in for some pain either way, and we’d be better off if we had been more aggressive earlier across the board. Half ass closing the economy equals a half ass recovery while the virus lingers.
They have to do something with the extra unemployment. Either sure up the President’s executive order or Congress needs to agree to something. Too many just on state benefits for too long will set off a chain reaction.
gee what a shocker, they shut down your state, make a “stay at home order” , close up half the shops and places of work, limit the number of people that can be at work if you still had a job , cut back hours…but the bills and necessities you have to pay for never stopped…
At the same time, you and I both know there are a number of opportunistic entities taking this opportunity to reset their books. They were in peril to begin with and now have just the excuse they needed to screw their creditors.
That’s part of it but let’s not completely disregard that the pandemic has exacerbated that situation by many fold. States can’t just fire up the printing press of course.
I agree, buuuuut each state is responsible for its own lock downs, you can’t have a state like California lock down for months longer than other states and have them assume the federal government will pick the the slack. They need to be factoring in the economic effects of their decisions as well, which is taboo to some people.
California is responsible for about 15% of all Federal Income tax paid despite having 12% of the country’s population. I think they are doing their part.
