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Bankruptcies Suddenly Soar Across Corporate America, Worst First Quarter Since 2009
by Wolf Richter April 16, 2015
Come down to Houston, William Snyder, leader of the Deloitte Corporate Restructuring Group, told Reuters. Youll see there is just a stream of consultants and bankruptcy attorneys running around this town.
But its not just in Houston or in the oil patch. Its in retail, healthcare, mining, finance . Bankruptcies are suddenly booming, after years of drought.
In the first quarter, 26 publicly traded corporations filed for bankruptcy, up from 11 at the same time last year, Reuters reported. Six of these companies listed assets of over $1 billion, the most since Financial-Crisis year 2009. In total, they listed $34 billion in assets, the second highest for a first quarter since before the financial crisis, behind only the record $102 billion in 2009.
The largest bankruptcy was the casino operating company of Caesars Entertainment that has been unprofitable for five years. Its among the zombies of Corporate America, kept moving with new money from investors that had been driven to near insanity by the Feds six-plus years of interest rate repression. ...............(more)
http://wolfstreet.com/2015/04/16/bankruptcies-soar-across-corporate-america-not-just-oil/
Warpy
(111,277 posts)Now let's watch them be surprised when it all collapses.
Aerows
(39,961 posts)for another engineered meltdown.
I already called corporate property and student loans to be the train wreck this time.
"No one could have foreseen this!" "No one could have imagined this would happen!"
Be prepared to hear that from every talking head on television.
Oh, and this will make you feel even better!
http://www.zerohedge.com/news/2015-04-16/signs-elites-are-feverishly-preparing-something-big
safeinOhio
(32,688 posts)as the SC has decided Corporations are people.
Lets make companies that want to file, watch films of starving employees after being laid off and make them jump thru hoops to find a court or lawyer to preform bankruptcy.
HereSince1628
(36,063 posts)by the pirateers.
I suspect this is part of the 'new' normal business cycle.
Yo_Mama
(8,303 posts)The long term average for the business cycle is less than 7 years peak-to-peak post WWII:
http://www.nber.org/cycles.html
jamzrockz
(1,333 posts)Clinton had his dotcom bubble and luckily for him, it burst during Bush's term, Bush had his real estate bubble and luckily for Obama, it burst during Bush's term and I have no idea which bubble is being blown now.
The problem is that the bubbles are getting smaller and smaller and the bursts coming faster and faster. The disease in the economy is still there because our leaders only focus on the symptom.