June marked a historic surge in US corporate bankruptcy filings, with the highest number recorded in a single month since at least the start of 2020 and surpassing half-year figures seen in over a decade.
S&P Global Market Intelligence recorded 75 new corporate bankruptcy filings in June. The pace accelerated from the first months of 2024 and is rivaled by only the busiest months in 2020, when the shock from COVID-19 pushed a relatively higher number of companies into bankruptcy. The 346 total filings so far in 2024 is also higher than any comparable figure in the prior 13 years. . . .
Any explanation? Or just something to muse about and then move on from?
Just that the economy is weak, and what “good” data there is is largely a mirage, (smoke an mirrors.) It does not require a deep look to see behind the curtain.
A tremendous wall of cash entered the economy during the COVID bailout madness, an insane amount really.
- It may or may not be helpful to continue to chastise the Fed now, almost four years later.
- What is clearly wrong is to pretend the mirage is real.
If I tout the unusually-high number of business bankruptcies, it helps people to see that.
