2023 Business Bankruptcies top pandemic high. Highest since the deep recession of 2010

Maybe Congress should stop trying to shovel money into a broken economy


From S&P

US bankruptcies hit 13-year peak in 2023; 50 new filings in December

US corporate bankruptcy filings rose again in December 2023, closing out a year with the most filings since 2010. . . .

There were 642 total filings in 2023, significantly above the previous two years and marginally more than in 2020, which saw a flurry of COVID-19 pandemic-related filings. Although investors expect the Federal Reserve to cut interest rates as early as March, companies will still have to contend with relatively high interest rates and robust wage growth in the near term. . . .

In related events:

The Biden administration is in talks to confer more than $10 billion in subsidies to Intel Corp., people familiar with the matter said, in what would be the largest award yet under a plan to bring semiconductor manufacturing back to US soil. . . .

In the not-too-distant past companies faced a hard choice of moving overseas or facing bankruptcy due to competition form companies that did.

Now Intel Inc.
(Net Income down 71% Y-o-Y, net profit margin 2.1%.)
is set to get money from eine staatlich-private Partnerschaft (that’s the original Marxist term, today we call it a public-private partnership.)

Intel’s 2.1% profit margin is not enough to keep any company alive.
Investors would be better off selling the company in little pieces and investing elsewhere, where the economy is failing companies can be kept alive by seeing funds from the central planning soviet.

I suppose it’s a good emergency stop-gap measure, but it’s an economic loser to try to run an economy long term by doing such things.

Here’s another view.
Note the graph stops in Nov.

Bankruptcies were even higher in Dec.