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Traditional Catholic Faith => The Greater Depression - Chapter I => Topic started by: RomanCatholic1953 on August 16, 2020, 08:55:50 AM

Title: US Bankruptcies Are Already At 10-Year High As Pandemic Takes Its Toll
Post by: RomanCatholic1953 on August 16, 2020, 08:55:50 AM
US Bankruptcies Are Already At 10-Year High As Pandemic Takes Its Toll
August 14, 2020 in News (http://republicbroadcasting.org/category/news/) by RBN Staff (http://republicbroadcasting.org/author/slad/)


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Source:  zerohedge (https://www.zerohedge.com/personal-finance/us-bankruptcies-are-already-10-year-high-pandemic-takes-its-toll)
by Tyler Durden (https://www.zerohedge.com/users/tyler-durden)
Fri, 08/14/2020 – 12:50

Gold (https://schiffgold.com/buy/gold/) and silver (https://schiffgold.com/buy/silver/) sold off when Russia announced that it had an effective vaccine for coronavirus. This plays into the myth that a cure for COVID-19 will cure the economy. But, as SchiffGold.com notes (https://schiffgold.com/commentaries/bankruptcies-already-on-pace-for-10-year-high/), there is plenty of evidence suggesting the damage to the economy is deep and will likely have long-lasting impacts even when the pandemic is in the rearview mirror.
(http://i1.wp.com/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/business-closed-5032555_1280-1024x576.jpg?resize=432%2C243&ssl=1) (https://www.zerohedge.com/s3/files/inline-images/business-closed-5032555_1280-1024x576.jpg?itok=dHNhS3ic)
We’ve reported on a number of these signs.
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In fact, bankruptcies are already on track for a 1o-year high.
(http://i1.wp.com/cdn.statcdn.com/Infographic/images/normal/22563.jpeg?resize=432%2C432&ssl=1) (https://www.statista.com/chart/22563/bankruptcies-in-the-us/)
You will find more infographics at Statista (https://www.statista.com/chartoftheday/)
According to S&P Global Market Intelligence (https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/us-bankruptcies-on-track-to-hit-10-year-high-as-pandemic-rages-on-59745245), 424 companies had filed for bankruptcy as of Aug. 9.
This exceeds the number of bankruptcy filing for any comparable period since 2010.
S&P Global Market Intelligence’s bankruptcy analysis includes public companies or private companies with public debt. Public companies included in the list of companies with public debt must have at least $2 million in either assets or liabilities at the time of the bankruptcy filing. In comparison, private companies must include at least $10 million.
Recent filings include Men’s Wearhouse owner Tailored Brands Inc.; Prysm Inc., a company that develops large display screens; oil driller Fieldwood Energy Inc.; and Summit Gas Resources Inc., which acquires, explores and develops domestic onshore natural gas reserves.
Just between July 27 and Aug. 9, 31 companies filed for bankruptcy.
(http://i0.wp.com/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/bankruptcies.png?resize=432%2C449&ssl=1) (https://www.zerohedge.com/s3/files/inline-images/bankruptcies.png?itok=WojPeKBM)
Bankrupcies have impacted most sectors, but consumer-focused companies have been hardest hit. According to S&P Global Market Intelligence, 100 consumer companies have already filed this year, including big retailers such as  Ascena Retail Group Inc., J.Crew Group Inc., Lord & Taylor LLC, J. C. Penney Co. Inc. and Neiman Marcus Group Inc.
(http://i1.wp.com/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/bankruptcy-sector.png?resize=432%2C322&ssl=1) (https://www.zerohedge.com/s3/files/inline-images/bankruptcy-sector.png?itok=3Kbvkgrz)
Melanie Cyganowski, a partner at New York-based law firm Otterbourg,  said in an email to S&P Market Intelligence that the pandemic has impacted companies in virtually every sector, saying the “economic impact is deep and far-reaching.”
Thirty-five bankrupt companies reported more than $1 billion in liabilities.
(http://i0.wp.com/zh-prod-1cc738ca-7d3b-4a72-b792-20bd8d8fa069.storage.googleapis.com/s3fs-public/inline-images/bankruptcy-big.png?resize=432%2C492&ssl=1) (https://www.zerohedge.com/s3/files/inline-images/bankruptcy-big.png?itok=6FrFiS_B)


Analysts say they expect the pace of bankruptcies to continue, with retail and small businesses facing the most pressure.
John Blank, chief equity strategist for Zacks Investment Research, told S&P Market Intelligence that “brick-and-mortar retail is not gonna work out,” adding that airlines and regional banks with overexposure to retail could “blow up” without government assistance.
This further undermines the narrative of a quick “v-shaped” economic recovery. Even with a cure for the coronavirus tomorrow, the economic impacts will likely drag on for months, if not years.
And yet, most of the mainstream still seems convinced that with a little more stimulus and a coronavirus vaccine, everything will be just fine. But as we’ve said over and over, curing the coronavirus won’t cure the economy (https://schiffgold.com/guest-commentaries/curing-covid-19-wont-cure-the-economy/). And the government “help” is only making things worse in the long-run.


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