U.S. Corporate Bankruptcies Hit Highest Level Since 2008 Financial Crisis
January 13th, 2025Via: DailyMail:
US corporate bankruptcies hit their highest level since the 2008 financial crisis – as Americans tighten their belts.
Companies have also incresingly been grappling with high rising debts – driven by high interest rates that caused borrowing costs to spike.
Posted in Economy | Top Of Page
I’ve noticed that some corporations are cutting costs every way they can. Cardboard shipping boxes from Amazon come in fewer sizes with less padding inside, so that smaller items get knocked around in bigger boxes. Blank bank checks no longer come in boxes at all, just in plastic bags that are twice as big as needed, so they get knocked around, too. The cardboard that is used had been sturdy, but now it is flimsy. It often says ‘recycled’, but surely a sturdy box can be made of recycled cardboard.
This sort of extreme cost-cutting combined with fast-rising inflation makes me think that they are either storing up cash in anticipation of a difficult future, or making up on their balance sheet for falling income, or both.
We are seeing that a debt-based economy doesn’t work for anybody but the lenders, those few and morally bankrupt rich.
What will happen to Facebook and X et al if their advertisers go bankrupt?