Why So Many US Companies Are Going Bankrupt

From Bed Bath & Beyond to Pyrex to WeWork, some of America’s best known brands are declaring bankruptcy. After years of cheap borrowing, the Federal Reserve’s push to curb inflation has also pushed up interest rates-and made the price of debt more expensive. So what does it mean for the economy and which industries are most at risk?
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[@Rochelletrem]

Sadly, banks continue to stumble, mortgage rates is on the rise with higher imports and lower exports, yet the FED is to lessen cost. So, where do we grow and safeguard our money now? something will eventually break if they keep raising interests and quantitative tightening.

[@Jessicahensley.]

ideally, you should consider financial planning to get the best results with your money, notwithstanding economy situation

[@AbdoolLogodesign]

Well agreed, I'm quite lucky exposed to finance at early age, started job at 19, purchased first home at 28, got married shortly afterwards to raise kids early. Going forward, got laid-off at 40 amid covid '19 outbreak, immediately consulted with an advisor in order to stay afloat and after subsequent investments, I'm barely 25% short of $1m ballpark goal as of today.

[@Jaffcardwell]

this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation

[@AbdoolLogodesign]

I've shuffled through a few advisors in the past, but settled with 'Julie Anne Hoover' her service is exemplary and she's a genius in portfolio diversification. I'd suggest you research her further on your browser, sure you'll find her basic info.

[@Jaffcardwell]

Appreciate this recommendation, hopefully I can get some insight to where the economy is headed and strategies to beat inflation with when I hear back from Julie .

[@johnben9]

Bankruptcy is a legal process that individuals or businesses can undergo when they are unable to repay their debts. It provides a framework for financial relief and a fresh start. There are different types of bankruptcy, such as Chapter 7 and Chapter 13 in the United States, each with its own rules and implications. Bankruptcy can have long-term effects on one's credit and financial standing, so it's essential to carefully consider the decision and seek professional advice when facing overwhelming debt.

[@MarkGrimm8]

I do not disagree, there are strategies that could be put in place for solid gains regardless of economy or markt condition, but such execution are usuallv carried out by investment experts or advisors with experience since the 08' crash

[@ritalorrigan]

Exactly why i enjoy market decisions being guided by a pro , seeing that their entire skillset is built around going long and short at the same time both employing risk management and market experience , been using a portfolio-coach for over 2years+ and I've netted over $3million in that time frame.

[@ScottArmstrong12]

This aligns perfectly with my desire to organize my finances prior to retirement. Could you provide me with access to your advisor?

[@ritalorrigan]

The decision on when to pick an Adviser is a very personal one. I take guidance from ‘Natalie Lynn Fisk‘ to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.

[@ScottArmstrong12]

Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.

[@Casey-summer]

A Bank crash/crash in the stock or real estate markets has less of an immediate impact on people's standard of living than inflation or currency devaluation. That the market is so negative at the moment shouldn't be shocking. If we are to survive in this economy, we need assistance right away. The ETF and stock markets are still quite volatile, just like the property market. Now all that's left of my $370K portfolio is ruins.

[@mellon-wrigley3]

Many people are still getting fantastic returns on their investments during this time. Simply maintain a strong sense of reality or ask for professional assistance.

[@sloanmarriott5]

The effects of the U.S. dollar's increase or fall on investments, in my opinion, are complex, but it has never been simpler to learn how to build your money than it is right now, when you may discover and experience a genuinely broad market passively by working with a successful Financial Consultant. Under her tutelage, I diversified my $400K portfolio across multiple markets and have been able to generate over $900k in net profit across high dividend yield stocks, ETF and bonds in few months.

[@louie-rose7]

​ *@shirleygarland4766* That does make a lot of sense, unlike us, you seem to have the Market figured out. Who is this consultant?

[@sloanmarriott5]

I'm guided by Camille Alicia Garcia an experienced coach with extensive financial market knowledge. While you can consider other options, her strategy has yielded positive results for me. She offers valuable insights, including entry and exit points for the securities I concentrate on.

[@louie-rose7]

I've taken the initiative to research "Camille Alicia Garcia online and verify her credentials. I'm impressed with her expertise, and I've reached out to her to share my financial market goals in detail.

[@badminverse2136]

Let me save you 6 minutes, it is the high interest rates that kills those companies

[@The_North_Star_of_Wall_Street]

no these companies are burning money

[@bigboss337]

@@The_North_Star_of_Wall_Street your comment and OPs comment are not unrelated. Since those companies are burning money they have used cheap debts to keep operating. Now interest rates are up and they cannot pay their debts

[@gimmick206]

NOPE, you are saying it like interest rate that kills, but the truth is that companies is so overleverage or simply degenerate. Especially with the vulture private equity without improving profitability. For PE, sometime its better for them that the company going bankrupt so they can sell the asset than actually helping them to achieve profitability again.

[@daipayanbhowal8914]

Because of artifically low interest debt 💸 that they took despite being burning huge amount of money

[@freemanol]

It's not high. In the last 10 or so years it's been too low. Dream economics is over. Time to pay up.

[@loangxuong9863]

That's what happens when you build an entire economy on debt

[@0fficialdregs]

and greed

[@vsstdtbs3705]

Women dominate voting and laws are bias towards them, such as custody, support and employment. I would love my kids and office jobs back from these thieves. It is difficult for men to work and pay their taxes when their children and jobs have been stolen.

[@thanhavictus]

Late stage capitalism

[@petebusch9069]

And you can thanks the Liberals and Rhino's for this.

[@tuckerbugeater]

what happens in late stage whatever you think is preferable? @@thanhavictus

[@lewispalmer7964]

And CEO’s will make more money than ever. Their are parts of this story that needs to be told.

[@donaldspaulding6973]

I wrote the same thing LOL!

[@Couldthinkofabettername]

And their taxes get cut.

[@a.i.dagodd1015]

CEO pay isn't based on productivity

[@nicolasbenson009]

We Are in Unchartered Financial Waters! every day we encounter challenges that have become the new standard. Although we previously perceived it as a crisis, we now acknowledge it as the new normal and must adapt accordingly. Given the current economic difficulties that the country is experiencing in 2023, how can we enhance our earnings during this period of adjustment? I cannot let my $680,000 savings vanish after putting in so much effort to accumulate them.

[@start3215]

Real Russia/Provincial Russia, Ordinary russian city - Voronezh city, population 1,05 mln, ethnic russians 96,9 %, night cycling, center old town *nDsjdhS-n48* Voronezh City , evening bike ride in Dolphin Park, Voronezh River Embankment *30DOyR9HyUU* Koltsovo small town is Suburb of Voronezh City (19 km), typical houses (middle class): House 120m² (first option): 10 ares (50x20m); living room 22m², kitchen 16m², 3 bedrooms:18m²,16m², 14m², 2baths, carport (without glazing) 20m²+boiler room 12m², terrace 16m²(without glazing), ceiling height 2.85-3.2m, video intercom, fiber optic Internet, cable TV, heating combined: underfloor heating and radiators, metallic fence 1.8m, metallic front door with shockproof glass, metal tile, paving slabs, mirrored windows, automatic gate. *03F0_pw9AeM* This is house cost (2023) $154,000 (house $151,250+land $2.750) House 120m² (second option): 10 ares (50x20m); living room+kitchen 32m², 3 bedrooms:16m²,16m², 16m², 2baths, garage 20m²+boiler room 8m², terrace 18m²(without glazing), ceiling height 2.85 *XpbkoWu4QXQ* This is house cost (2023) $164,500 (house $161,750+land $2.750) New Street in Koltsovo small town, not completed: street lights, new saplings shrubby trees, children's playground, second wave of asphalt(road). All the houses have already been sold. *U9Jg4h3RwPY* The walls of the houses are claydite concrete block 20cm+insulation 10cm+decorative brick15cm=45cm, 50 winters warranty. Walls *tZ-l_Yhn62c* Windows are triple glazed. Temperature standard: +24-26°C(indoor): +24°C - entrance hall, hallway; +26°C - toilet and bath, bedroom, living room, kitchen. Driving from Voronezh city, Leskovo housing complex is suburb of Voronezh city (23 km), typical houses (business class): *oaWwgdqI3_E* House *3135enyQyA0*

[@start3215]

_The best infrastructure is located in the Moscow region, but there is a very strong overpopulation: officially 25 million (unofficially 30 million) - 12.5 mln of the population of Moscow, the agglomeration of 17.5 million, the Moscow region of 8.5 million, 2.5-3 million migrant workers._ *New Moscow Administrative District,* Moscow region, Central Russia, population: 573,000 - ethnic Russians 87,56 %, Ukrainians 2,09%, Armenians 1.33%, Tatars 0.83%, Belarusians 0.53%, average annual t +6,9°C, climate Dfb (678mm), average monthly sunshine hours 75,8, unemployed 5.8%, crime index 36.69%, Gender: men 44.3%, women 55.7%. Ecoregion: Sarmatic mixed forests. The New Moscow has 42 a new Residential Complexes with 31 schools and 68 kindergartens. *Classification of Residential Complexes* in New Moscow (3 classes): economy 60%, comfort 30%, business 10%. The Residential Complexes *"Sсandinavia"* and *"Spanish Quarters"* is typical a residential complexes of comfort-class at a New Moscow. *New Moscow Administrative District,* Sosensky urban settlement: *Housing Complex "Spanish Quarters"* - 4,7 km from Moscow Ring Road: population 20,000 (1 area, comfort-class). New Moscow Administrative District, Kommunarka urban settlement: *Residential Complex "Sсandinavia"* (comfort-class) - 6,5 km from Moscow Ring Road, population 60,000 (3 areas, comfort-class). Residential Complex "Spanish Quarters", *Municipal School "Logic"* for 1,300 schoolchildren. Migrants from the former republics of USSR: Central Asia and the Caucasus 10-15%. First School Day *n_rdYhEXh-c* School Day *gBMZd_IrtBQ* The Headmaster and Teachers Dance *9Qxvlzd55FA* RC "Sсandinavia" *Municipal School "Energy",* Migrants from the former republics of USSR: Central Asia and the Caucasus 10-15%. Last School Day *qCBWTaFalhM* RC "Spanish Quarters", Elementary School "Dialectic", First day *7372v1eAucY* Meeting of the Parents of the Schoolchildren "Spanish quarters" and the Director of the school construction, the Headmaster of the School *im4ZdjWo14E* RC "Spanish Quarters", Municipal Kindergarten "Kaleidoscope" for 300 children with pool *d1PSKmWuois* Moscow region apartment/condo tour: time 17: 10 - 2 bedroom 87 sqm *KZT3tNYBswM* time 14: 39 - 1 bedroom 67 sqm *TmVhOYZq09o* time 00: 00 - 2 bedroom 74 sqm *0w47H9fD5F4* time 09: 35 - 1 bedroom 72 sqm *LTCETRN-RyU* *A101:* We are building for You! Social clip *KkEZrNEVKz0*

[@start3215]

Russian Nature is one of the most beautiful in the World. Russia, Central Siberia, Krasnoyarsk city. Siberian Mountain mixed subtaiga (Hemi-boreal forest - subtaiga - zone of mixing deciduous and coniferous forests: average width from north to south is 150km, in Russia, usually between 50-58 latitude of the Earth, Krasnoyarsk - latitude is 56). Siberian (arctic) rain's forests, humid continental climate. Real Russia/Provincial Russia, Central Siberia, Krasnoyarsk city (1,18 mln population: ethnic russians 91%, ukrainians 1,4%, tatars 1,3%, germans 0,8%, poles 0,5%; distance from Moscow is 3.353 km): Nature Park "Stolby" - 10 km from Krasnoyarsk city ("Stolby" bus stop): >100 rock formation (high 40-90 meters in the Foothills of the Sayan Mounts at an altitude of 400-800 meters) with Siberian Mountain Mixed Subtaiga (coniferous forest with birch/aspen admixture) short clips: *v0bAPovX5Ko* *IHmwpnZAdF8* Motocross near suburb of Krasnoyarsk City through the Siberian Mount Mixed Taiga - subtaiga (200-300 meters from Sosnovoborsk (Pine forest) city), father and son (elementary school), Dima and Aleksandr. Siberian mountain subtaiga (grassy forest) *qPEBY5lqZ9M* Iron Race (2,5 hours in the Mountain SubTaiga) *xiDm6YCdcKg* Krasnoyarsk suburb Mountain Motorcycle Club *-j9Kqh4EDXE* Siberian Mountain Mixed Taiga: Common pine 32%, Siberian fir 30%, Aspen 15%, Siberian larch 9%, Siberian spruce 7%, Birch 5%, Siberian cedar pine (Siberian cedar) 2%, etc. The outskirts of Krasnoyarsk city, Extreme Sport Day *uoU3CRsv-zQ* *VWksyMXjx3k* Nature Park "Stolby". Walk *Idu75hG8GUQ* Krasnoyarsk region, Sayan Mountains (The area is larger than the area of the UK), Nature Park "Ergaki", Siberian cedar pine (Pliocene relict), Sky Marathon *nAbcIZOALfY* Nature Park "Ergaki" - Alien Planet *THS2Bcvh2AI* Real Russia/Provincial Russia, Cenral Siberia, Krasnoyarsk city: a walk with Anna. Housing complex "South Coast" *BWEI8h3A6bA* Welcome to Central Siberia, Russia! Krasnoyarsk city: East Siberian Taiga Area is 2,4 mln sq km + West Siberian Taiga Area is 3,9 mln sq km - largest forest in the World!

[@tishofikini2776]

We in Africa used to admire how Americans do soo much shopping everyday and wondered how americans are soo rich......and with movies showing the prosperity in America, everyone wanted to go to America....little did we understand its all on credit. Looks like the time to pay is here with them.

[@VinyZikss]

but compared to 99% of africa americans are indeed very rich

[@user-Kova15]

Don’t buy inro the propaganda. Very, very few Americans are wealthy. Everyone else is poor

[@business]

Get unlimited access to Bloomberg.com for $1.99/month for the first 3 months: www.bloomberg.com/subscriptions?in_source=KZbinOriginals

[@kevinjohnstone4023]

This used to be one of my most watched channels... sadly, it's been a while since i visited it has been a very rough year... i am experiencing one of the toughest phases of my life... Lost a fortune lnvesting in emerging companies. Hopeful, for a turnaround.

[@vertice2759]

easy money has ruined us

[@cinpeace353]

Yes, but that's what kept US alive. It is an economy and government that builds on debt. Americans own debt trap.

[@dachochiyo3992]

@@cinpeace353 feeling bad for young American generation. how bad old people did!!!!!

[@johnsamuel1999]

The private equity transfering debt to hospitals might lead to higher medical costs for patients

[@DemPilafian]

Hospitals are perfect for private equity because medical care is inherently difficult or even impossible to comparison shop. By the time you know the actual real price, it's too late to switch hospitals.

[@MomopilotCool]

​@@DemPilafianit's almost like they shouldn't be run for profit

[@Romogi]

I just don't go. I schedule all planned medical costs for when I go overseas. If I die here, I die.

[@afihaileywibowo1095]

There should be a regulation on how (much) profit can be milked from health related industries, where humanity is concerned

[@DemPilafian]

@@MomopilotCool Why did you address your sarcastic reply to me? I'm just explaining how private equity is able to abuse the system.

[@aelfredrex8354]

That's why I like the company I work for. The owner does not like being in debt. He's not letting the accountants ruin his machine.

[@MJ-uk6lu]

Debt is always a cancer

[@0fficialdregs]

bingo

[@user-yy9hk9od9u]

More consumers are shopping online. You will also see companies fail because they take a political stand and its customers cancelling them.

[@Tricia-Tricia]

🙅‍♀ "Ugh, seriously? More people glued to their screens, buying things online. It's like we're all becoming digital shopaholics or something. 😒" 💁‍♀ "Did you hear? Some companies are actually risking it all by getting political. And guess what? Their customers are not having it! They're canceling them left and right. 💅🏻" 🤔 "So, businesses need to careful not to alienate their customers with controversial stances. It's a risky move that can lead to their downfall. 💔" 😳 "Just imagine the overwhelming power of online consumers. It's like a digital revolution, where customer satisfaction is the ultimate judge. 📱💻"

[@Ashleycorrie8494]

It's been a rough year with losses from failed banks and government, real estate crashes, a struggling economy, and downturns in stocks and dividends. It feels like everything has been going wrong. What a terrible year it is…

[@GaryWinstonBrown]

A financial professional you work with could really prepare you for life. I'm glad I was able to get in touch with my coach Samuel Peter Descovich earlier this year because I was actively cashing out from my portfolio and finally earned over 370k just in the first quarter while everyone else was complaining about the downturn.Samuel Peter Descovich helped pay down our debt and save up for retirement.

[@Ashleycorrie8494]

Thank you so much for the advice. Your coach was simple to discover online. I did my research on him before I scheduled our phone call. he appears knowledgeable based on his online resume.

[@AnnaKrueger809]

I found his extraordinary resume when I searched for his name on Google. I count it a gift that I went over this remark

[@Bradleyschaeffer376]

Every downturn offers an opportunity. Samuel Peter Descovich is a brilliant mentor in terms of portfolio diversification. You can look him up online and confirm his extensive knowledge of the financial markets for yourself. He's excellent!

[@thanhavictus]

It's not just the United States. Other countries are also struggling. It's not hard to recover from a pandemic and expect magical growth land of line-go-upism capitalism to be sustainable

[@baarbacoa]

Bad management burning cash. Low interest rates just gave them more time to squander the money, and more money to squander

[@Tricia-Tricia]

😡💸💔 Really? Bad management, burning cash? How do they even get away with this?! 😤🔥 And now, low interest rates are just adding fuel to the fire, giving them more time and more money to waste! 🙅‍♀💸💨 Sigh... it's frustrating to see this happening.

[@baarbacoa]

@@Tricia-TriciaOne example: A company goes public. Stock is sold to the public. The company now has a large pile of money. Maybe they borrow more. In a few years, after paying high salaries and bonuses, the company goes bankrupt. Management leaves, having collected millions of $$$ in compensation. Stockholders are left with $0.

[@Tricia-Tricia]

@@baarbacoa 🙄 Wow, isn't capitalism an amazing system? 💸

[@dennisatkins9666]

THE BIGGER THE BOOM ,THE HARDER THE FALL

[@Joso997]

Twice the pride, double the fall

[@ShrapnelBullet]

The brighter a candle burns the faster it will fade

[@r3dp1ll]

soon ...

[@mike9132]

There was a lot of PPE fraud, many owners took huge 'forgivable' loans, paid out massive bonuses knowing they would never be paid back.

[@SubMeISubYouu]

Fraud is rampant all around

[@NicholasWHaley7]

PPP

[@mike60521x]

it actually goes back to the 9/11 and 2008 TARP program - easy credit to help stabilize economy for both cases

[@cisium1184]

Your post doesn't even make any sense. You are linking together a bunch of things you half-heard and half-understood, and none of which is at the root of this issue. You should limit your posts to topics you actually know something about.

[@mike9132]

@cisium1184 A close friend showed me a check for 600k issued by the IRS and told me it was from the employee retention credit. Hows that for details.

[@donaldspaulding6973]

And yet CEO's salaries always go up! It's as if greed is consuming all sectors of our economy.

[@SunsetRC]

There's nothing wrong with the economy. E-commerce is dominating the sector.

[@gregorysagegreene]

If you didn't want to get hit by high interest rates, then you shouldn't have dug into the debt trough. Thought all these companies had 'economists' anyway?

[@amaterasukeinarraminami8145]

Yes mostly most powerful CFOs in USA 😀😀😀

[@ronblack7870]

the stock market wants growth in a company . if a company is not growing the price tanks. so ceo's get aggressive with growth strategies and borrow big sums. when rates are a few percent that can work. now the payments become huge and if it's retail , customers are staying away in droves. online has taken over and we know who dominates that. and companies related to retail also see the downside.

[@Neckername1]

To answer the title question. These business were built on models that rely on cheap money, and a weak labor force. The labor force has given up on working until they get something that can actually make sense and pay bills with the time they are expected to allot to work. Since a lot of places don't want you to "cheat" on them with other employers, they basically left no other possible result left on the table. "They" being the collective interests of corporate america who have been taking profit regardless of how it happens. This isn't a magical system, it is an economy, it can output great things into the world, with proper management and reliable inflows of the correct resources. Basically, the kids have been outside breaking the rules and having all the fun, but daddy is home, and the nonsense and bs stops at the bootheel. It's worse than 2008, we dodged part one of this whole inflation issue thanks to covid. But we also catalyzed the second part. We WILL see on of the largest economic depressions in history by the end of the decade. Everything is repeating from last century in a modern way, and right on schedule

[@Meitti]

Quite intriquing how human world of business acts much like a forest. When a big old tree falls down, it gives sunlight to new seeds to grow, same with large companies. And in this case we're having a forest fire but the ashes of old companies will fertilize the ground for a future forest of business. Demand hasn't gone anywhere but the prices are too high, so a crash is needed for economy to start flowing again.

[@Tricia-Tricia]

🌿💼 Quite intriguing how the human world of business acts much like a forest, don't you think? 🌳 When a big old tree falls down, it gives sunlight to new seeds to grow and thrive. Similarly, when large companies face challenges, it creates opportunities for fresh, innovative businesses to emerge. 🌱 And right now, it seems like we're witnessing a bit of a forest fire, where some older companies are struggling. However, let's not forget that the ashes of these old companies will eventually fertilize the ground, nurturing the growth of a future forest of business. 🔥💼 Demand is still there, but the prices have soared sky-high. So, it seems like a crash in the market is necessary to get the economy flowing again. 📉📈 It's like hitting the reset button, allowing for a more sustainable and balanced business landscape. Let's hope that this crash will serve as a wake-up call and pave the way for a healthier and more prosperous future. 🚀💰

[@wabio]

It's not that difficult to understand. When essential living costs (housing, healthcare, education, childcare, energy) keeps rising faster than wages.......discretionary spending goes down. People don't buy the tubs of popcorn at the movie theater, or the $50 Hello Kitty bathmat.

[@Tricia-Tricia]

😒 It's really not rocket science. When basic expenses like housing, healthcare, education, childcare, and energy continue to skyrocket while wages miraculously stay stagnant, it's no wonder people cut back on non-essential spending. Say goodbye to those gigantic tubs of popcorn at the movies or that ridiculously overpriced $50 Hello Kitty bathmat. 💁‍♀

[@richardmorrison1467]

Probably the best analysis of not only the US Economy but the World. 20 years of very cheap money on top of the Covid crisis and now global instability and the Ukraine war, etc. are going to inflict a lot of pain!

[@Tricia-Tricia]

💥💔 The impact of the US Economy and the world is no joke! With 20 years of ultra-low interest rates, the pandemic, and the current global instability - including the Ukraine war - brace yourself for some serious suffering. 😫

[@RaviGoel1]

Over expansion beyond sustainable demand Over buying stocks that they can’t sell beyond 60%, 40% goods sold for losses Under selling with increasing now of DTC brands giving competition at much lower costs Over valued beyond income multiples Over paid cxos and employees Price multiple has risen from 2.5x of cost to now 7x, means garbage being sold at high prices, doesn’t work in long run

[@Tricia-Tricia]

🙄 Typical. They never learn, do they? 😬 Seriously, when will they realize they're setting themselves up for failure? 😔 It's frustrating to see such short-sightedness in the business world. 😱 Can someone please explain the logic behind overvaluing their products? 😤 And guess who's paying for all of this? Us, the consumers. 👎 It's just not sustainable in the long run. 💸 It's no wonder they're struggling to make a profit. 🙈 Time to face the harsh reality of their misguided decisions.

[@dougiep2769]

Dont feel bad for corporations one bit. Just feel sorry for their employees

[@Tricia-Tricia]

😬 I totally get where you're coming from. It's important to remember that behind every corporation are real human beings, the employees, who often bear the brunt of any negative outcomes.

[@ropro9817]

Ok, but why is the success of so many businesses predicated on carrying so much debt? 🤔

[@smallfox8623]

Could probably range from high upfront costs to start a business to a complete lack of business fundamentals and a deeply flawed or unprofitable business idea.

[@aldousd666]

There's a common perception that companies can 'go into growth mode' and borrow money like crazy to expand and theoretically grow their pipelines. They fully plan to adjust and go back into 'profitability mode' at some point. The problem is they often plan to roll it over a few times and when the rates change before they get to do that, they lose. If low rates are the only way you can afford to borrow, you can't afford to borrow.

[@Meitti]

They're trying to repeat the success of Amazon by focusing on growing big first and thinking about actual profitability after they've pushed out all their competitors. Modern monopolies funded with debt money.

[@marktn9851]

Having lived thru a 20-year low rates cycle, it will take some time or event to happen for a wake-up call.

[@thesatsui]

Look at it as an investment. A company invests money into a product to be developed, right? Like, the EV Ford 150. They may not have the money for that product now, so they take out a loan to invest that money to make that product a reality. Stores will sometimes do the same while they try to attract new customers. The problem is that sometimes they guess wrong.

[@generativeresearch]

For economists this is how an economy recorrects itself after a fallout

[@aldousd666]

Yeah, as long as there's no government intervention to kick the can further down the road.

[@gabbar51ngh]

Maybe these companies Shouldn't be relying upon cheap loans to sustain a business which isn't profitable?

[@blackaugust2035]

You right, money should not be that cheap that long. Everything has consequences just we know it or not.

[@MichealTanner141]

It's been a rough year with losses from failed banks, real estate crashes, a struggling economy, and downturns in stocks and dividends. It feels like everything has been going wrong. What a terrible year it is…

[@Rhgeyer278]

Thank you for sharing your experience. Your coach was simple to discover online. I did my research on him before I wrote to him. He appears knowledgeable based on his online resume.

[@VictoriaWood-uc6mp]

The bank crisis isn't over yet, and experienced individuals know credit crises don't end quickly. Some find it amusing that some think it's resolved, but in reality, we're headed for a major economic downturn due to this credit contraction.

[@floxydorathy6611]

The US economy is grappling with uncertainties, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

[@MSDGroup-ez6zk]

The world has left the USA....karma.

[@frenchyfries3551]

overpaid executives

[@bwofficial1776]

Not really. Running a company with thousands, tens of thousands, even hundreds of thousands or millions of employees is much harder than bolting on lug nuts with a torque wrench all day long. For executives, companies can't afford not to pay them for their skills.

[@user-Kova15]

@@bwofficial1776no, my friend, it’s not harder at all

[@jon6309]

Retailers had the power to prevent this inflation but when lockdowns stopped businesses were too greedy and wanted to make up for lost time and didn’t want to get over sunk cost. Many businesses admitted that they raised prices after the lockdowns because they just wanted to!

[@SunsetRC]

It has nothing to do with the prices, it's the convenience of e-commerce.

[@Motosmostwanted]

This is so much larger than one vertical.

[@TexasScout]

That’s why I’m glad that the business I work for has no debt. We are strictly a cash business. Anything we buy gets paid off in seven days no exceptions.

[@DemPilafian]

Is your business even legal? Sounds very shady.

[@TexasScout]

We are in Oil and Gas Production Equipment Sales and repair and have been for 35 years. @@DemPilafian

[@bwofficial1776]

@@DemPilafian It's quite common. Many smaller businesses don't want to deal with setting up card processors and the processors taking 3% on every transaction. Cash-only is legal in the US. If you can't pay cash for it, you don't need it.

[@DemPilafian]

@@bwofficial1776 If you want to use cash that's fine. I literally have not used cash for anything in about 3 years. I haven't died yet.

[@doujinflip]

​@@DemPilafianLegal, just not scalable.

[@axem.8338]

This is a great opportunity to buy debt from holders for a medium long term. That too very cheap.

[@aldousd666]

blood in the streets!

[@cinpeace353]

Don't forget some debts may default. 😅

[@Camacho4Prez2024]

Technology has the pattern of devaluing everything it touches. Not in a negative way but in the way that it reduces scarcity and cost of goods and services to the point where there isn't enough value generated to support those that labor to create and maintain them. Everything has to be subsidized in various ways, from direct subsidies to indirect methods like overhyped valuations and borrowing based only on the idea that "x" company will take over a market. What's unsaid is that, once an industry reaches a certain technological threshhold, "taking over the market" effectively means destroying that market and making it monetarily unsustainable. As a result we've already seen signs of tehcnological suppression and even regression via regulation. This is society entering its post-scarcity phase. We're just currently in denial about it and instead of adjusting society accordingly, we're trying to brute force a solution that stays in line with traditional capitalist thought even when the math clearly won't add up over time.

[@allenaxp6259]

This trend of dematerialization has both positive and negative consequences. On the one hand, it leads to lower prices for consumers and a higher standard of living. On the other hand, it can lead to job displacement and economic disruption. It is important to note that technology is not the only factor that contributes to dematerialization. Other factors, such as globalization and deregulation, also play a role.

[@Spacemonkeymojo]

THIS is what happens when you make money SO cheap that even companies that are non-viable are able to keep running. THIS is why interest rates should NEVER be lower than 2%. Low interest rates give weak companies the ability to exist.

[@LowerYourExpectationsPleb]

Cheap money allows less fortunate people to get capital for their inventions. Your idea limits technological development, economic growth, increases unemployment and lowers income.

[@Spacemonkeymojo]

@@LowerYourExpectationsPleb Oh yeah sure, that’s worked out just great for countries like Japan hasn’t it? 🙄

[@LowerYourExpectationsPleb]

@@Spacemonkeymojo You will need a lot more info to understand why what you said is false. Later I'll look up Coin Bureau's video about Japan's macroeconomics for you, that way you can learn about how the economy works.

[@Rambyte53]

Simple Macro Economics: Expenses exceed Revenues. Demand is less than Supply.

[@Couldthinkofabettername]

Decades of depressed wages has finally come back to bite corporate America.

[@Tricia-Tricia]

😤 Corporate America, you've reaped what you sowed! 😡 The repercussions of years of oppressively low wages have finally caught up with you! 😠

[@mack-uv6gn]

Private equity 🤦🏻‍♂️

[@ducann22]

Interesting topic. I hope bloomberg will make topic about Private Equity!

[@Tricia-Tricia]

😍😉 Definitely! Private Equity is such an intriguing subject. It has the power to drive economic growth and create employment opportunities. Can't wait to see Bloomberg delve into this fascinating topic and provide us with valuable insight and analysis! 🎉💼

[@michgoo7275]

No evil in the business world like private equity especially when they go into commercial real estate and Healthcare. They bring their risky business from Wall Street to Main Street.

[@mikhaillunin3478]

This was very well made. Thank you to the people who created it and to the narrator!

[@aldousd666]

I bet there's way more than $200 bln in distressed debt in the US. Some companies probably have billions parked in shell corporations so they can take it off their books. Anyone who put on a spread trade of any kind (even indirectly) based on previously low rates is stuck with it, or worse getting margin called.

[@donaldspaulding6973]

You're right and what should be concerning is that the debt to GDP ratio is close to what it was in the fall of 2008.

[@Tricia-Tricia]

Oh boy, there's probably way more than $200 bln of distressed debt in the US! 😬 I wouldn't be surprised if some companies have billions of it tucked away in shell corporations, just to clean up their balance sheets. 😏 Anyone who tried to play with spreads or took advantage of low rates is in a sticky situation now. They're either stuck with it or facing dreaded margin calls. 📉💰

[@zoltangeffert2449]

Just noticed: at 3:29 it is not a US mall. That is Battersea Power Station Shopping Centre in London.

[@Anthony-wm5of]

This is why I'm subscribed!!!😊

[@bentoblaster]

The Trap Hi Hat Rolls are so cringe. 😂

[@Sacto1654]

I think a huge issue here is the totally dominance of online retailer Amazon, a company blamed by many for causing too many brick and mortar stores to fail. It may require the US government forcing Amazon to get out of certain types of online retail sales to bring back many brick-and-mortar stores.

[@Menaceblue3]

It won't happen because costs of physical stores is too much when people are cash strapped and certain stores are shop lifted every hour on the hour😅😢

[@shrek769]

I don't think this will happen - the physical stores will have to do business online or be outcompeted. It costs less to do business online anyway and allows a business to serve more customers

[@chefdave2910]

I would have to say…. Biden 2024!!!

[@rudysal1429]

​@@Menaceblue3probably won't happen but wouldn't be surprised if some of these companies are split from their monopolistic business practices. Amazon forces smaller companies to provide their sources for materials and then make "Amazon basic" products with the same designs and even cheaper prices. They have been found to be using illegal practices to take over markets with buying bulk and knowing what sells with their logistics from sales. Apple and Google are just as bad

[@shoelugs]

Online stores like amazon eliminated or reduced the need for one layer of the supply chain for consumers. Retailers are having a hard time to compete with the pricing of online stores that has close to no rental costs and other costs related to maintain a physical store.

[@saurabhbhambry]

Love how well thought out this short video is as it covers companies across almost every vertical - retail, consumer, commercial real estate, healthcare to tech. It's interesting to see how debt (and hence interest rates) are impacting all these industry verticals.

[@klank67]

Too bad it's not inflation that's causing the problem ... it's corporate greed. They seem to leave that part out.

[@Pierrick2009]

What do you expect? Insanely low interest rates for 15 years and then central banks forced by events to jack up rates to levels most young adults have never experienced

[@Tricia-Tricia]

😬 Well, that's quite the roller coaster, isn't it? 🎢 It's like living in a financial drama! 💃🏻💸 But hey, who could resist those tantalizingly low interest rates for all those years? It's like walking through a financial wonderland! 🌈🌟 However, the sudden hike in rates might make some young adults feel like they're riding a financial rollercoaster without a safety harness! 😱🎢 Hang on tight, folks! The ride might get a bit bumpy! 🤪

[@gamerforlife9865]

Uncompetitive companies going bankrupt, whats new

[@subhajitdasgupta1644]

Ahhh bankruptcy and reserve currency status! It's like heads I win, tails you lose 😂.

[@Tricia-Tricia]

Haha, talk about a double-edged sword! 💁‍♀💸 Being the holder of the reserve currency definitely has its advantages, but it's not without risks either. 😅 Bankruptcy can really make you question the stability of that status. 🤔💔

[@jryde421]

Its not that big of a deal...the economy changed and people didnt need or want so they shrank or disappeared. New business will help for the new economy will help

[@Tricia-Tricia]

🤷‍♀ It's not that big of a deal, really. The economy just went through some changes, and as a result, some businesses either shrank or disappeared because people didn't need or want them anymore. But hey, new businesses will come up and thrive in this new economy, which will be a positive thing! 💪

[@djayjp]

Not a single statistic in that whole video that states the actual rate of bankruptcies....

[@nathanngumi8467]

Very interesting!

[@Nick-zw7gg]

Didn't see that coming... LOL!

[@lokesh303101]

Standards have been raised to withstand the Real Markets, which is appreciable.

[@Tricia-Tricia]

👏📈 The standards have been raised to withstand the Real Markets! Bravo! 💪💼

[@DS-vx3wf]

companies come and go.... nothing new.

[@fern8580]

✔Tax are the roots of issue. ALL those who use a "license" to work (Police Officer, Firefighter, Military Municipal employees, ALL the health sector,and of course the officials of the lazy state, The entire education sector subsidized by the state) Tax are the roots of issue.

[@r3dp1ll]

Taxes are necessary for basic state functions and infrastructures. But yes far too high and used for tons of useless and dangerour 3 letters agencies.

[@clifb.3521]

Enough with borrowing too much money. And enough with paying dividends that you can’t afford to pay: memo to the company that owns Pyrexx.

[@zdenek3010]

Debt cycles and economic shocks are needed. They allow to break old structures and status quos, enable new players with innovation on the market, enable citizen to prosper fro mnew innovations and new efficiencies. Old and monopolistic only lead to corruption and inefficiencies. Sometimes you need a bit of fire for a new prosperous forest to grow. Sometimes being worse off and sometimes being better off is what drives small changes that are necessary for our stable functioning.

[@yoursubconscious]

bankrupt doesn't always mean negative, however.

[@m2n900]

excellent last words....

[@detectiveofmoneypolitics]

Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank

[@Tricia-Tricia]

Economic investigator Frank G Melbourne Australia is still watching this very informative content! 👀🔍🎉 Cheers, Frank! 🥂

[@onedaya_martian1238]

The trillions in debt of the US are responsible for inflation. A country cannot print billions in cash and not expect the demand of goods and services to stay the same.

[@Swolejohll]

This is about new debt that is generated. People keep just making interest payments and rolling the balance is causing this issue.

[@Funktastico]

5:35 Anyone know what's the BGM ?

[@SEPHICHI420]

all of this is why I quit my job and started traveling and going to state parks and concerts. its a better life to have a small income with small bills.

[@life.goes.]

I wish the end to corporate greed

[@wilfredpeake9987]

They are three jobs gathering making and distributing. America basically put a lot of resources into distribution and gathering resources rather than making stuff. So think the big box stores and oil fields now they need to go back to actually making stuff again if they want their economy to be stable

[@beback_]

Okay I'm actually sad over Pyrex.

[@leea3531]

Gotta close the trap house 🏠 😂

[@madyak222]

The Most inflationary factor is, the cost of Money, as it drives up the price of everything. In the US all Money is debt. That is the USD is a Debt instrument, Since 1913, when Woodrow Wilson sold out the US people and economy to Corporate banksters, who had Wilson present and pass the Federal Reserve Act, which gaurantees debt & devaluation in order to ensure profits for corporate banks. a gauranteed recipie for disaster. People have forgotten that President Jackson won his tenure as POTUS on the single ticket of getting rid of the USA's first corporate, Reserve bank as the US population knew that having a Corporate Reserve bank, gaurantees that the population would lose all their savings and assets through engineered Pumps and dumps of credit, yet by 1913 the US population & politicians were too apathetic to fight against corporate bank corruption and economic destruction.

[@Patrickmimi-it3uw]

I appreciate the knowledge you've provided. But this administration has putting so many families into difficult🤕 situations, I pray for our country, we need compassion for the American my country.

[@Mike-gh4qs]

I've watched numerous videos on trading, but I haven't made much progress due to the confusing information or stories of personal success. Could you recommend a reliable trading coach who can provide clear guidance?📊

[@beatriceegi1158]

While there are many coaches available, but Sara Morris stands out as a popular choice. Her recognition is growing daily, and her strategies have been highly effective during this period. With years of financial market experience, she is someone I cannot afford to lose as a guidance

[@KellyWatson-eb7bw]

Are you talking about *Mrs. Sarah Morris?

[@michellebarnett332]

That woman is really amazing I still can't believe someone can be this exceptional when it comes to trading crypto.

[@LaunaHallas-hc5ww]

That's true, am also proud to be a beneficiary of Sarah Morris, has been my trusted guide for the past 9months now and her financial skillset has been exceptional, I have complete trust in her.

[@kentondragon9263]

As uncle dave says...you gotta pay of gosh darn frikkin debt with gazelle intensity😠

[@B21_raider]

Bad businesses crash all the time

[@user-to2gh7sg3l]

Finance and money in general is pretty boring... It's crazy to me some people do this stuff for decades.

[@studleyjb3172]

Beware of people in sites like this recommending specific financial advisors.

[@jamesmf968]

The terms “sector” and “industry” are used interchangeably by the presenter, it’s confusing and possibly misleading.

[@Toubabou]

Incurring debt to finance operations or investment makes sense. As an accountant, incurring debt for share buy back is a sure way to bankruptcy (see Bath and beyond )

[@Tricia-Tricia]

🤷‍♀ Incurring debt to finance operations or investment makes sense 😬 As an accountant, incurring debt for share buy back is a sure way to bankruptcy (see Bath and beyond)

[@ignaciodominguez3214]

This is what happens when you build cities around cars. Big lot stores only make their money on the weekend because thats the only time Americans have to go shopping. A business will only have DAILY revenue if they have foot traffic DAILY, not just the weekend.

[@SubMeISubYouu]

All problems come from borrowing Dont borrow if at all possible

[@kunalnichani1]

High GDP on one side, bankruptsies on the other side :D This simply shows Evolution. Survival of the fittest. A great sign that things are getting back on track.

[@atulkashyap7]

Wake up....the sooner the better 😊

[@antihypocrisy8978]

1-2% is high? Are you high?

[@SugaShark]

20 years of unprecedented loose monetary policies will do that

[@kgblankinship]

Why are we getting business failures due to debt when we lavished tax cuts on them back in early 2017?

[@dlewis8405]

I would stay sick before I set foot in a “for profit” hospital. Imagine what kind of bills could be generated from appendicitis.

[@BryanMccomb-sg7qw]

I like how the business is going bankrupt people are loosing there jobs but for some reason CEO's are still making millions

[@BOND19951]

How could this be?! I thought this was the golden era for our economy. That was what western news told me. Surely they weren't lie.

[@user-zl9zc3jv1y]

From a data perspective, the U.S. economy appears to be thriving. How can this be explained? Is there someone from the United States who can provide an explanation?

[@kinngrimm]

and often enough it is then some poor schmuck and his pention who takes the hit. I mean i got no issue with companies taking loans aslong they use these funds to make investments into their company. Yet i suspect due to marketpressures and trying to keep the appearance up, of being successfull, often enough that money is used to pay huge manager salaries or dividends to their shareholders.

[@LalaPala-ml2or]

when go down, then go in style

[@djayjp]

Why wouldn't corporates issue fixed rate debt when there were near 0 interest rates?

[@cinpeace353]

They are borrowing new debt to pay for the old debt like the US government. New debts use new rates. 😅

[@djayjp]

@@cinpeace353 I mean the corp borrowing rate did drop a fair bit, but yeah you're exactly right, they just didn't play their cards right.

[@seanrodgers1839]

Closing companies is capitalism in action. Management got soft and forgot to account for risk properly. Capital can now be allocated to companies with better management. Also, trends change, but, management should chart a path through change.

[@Tricia-Tricia]

Closing companies is capitalism in action. 👠💼 Management got soft and forgot to account for risk properly. 😏💰 Capital can now be allocated to companies with better management. 💪💼 Also, trends change, but, management should chart a path through change. 📈💼

[@godzillamothra5983]

why the house of cards are falling?

[@kifkroker6483]

Hmm... to myself... so other Kif, does this mean that sooner or later this will first spill then followed by violent flooding of the real estate market? Yes other Kif that is correct!!!

[@Mauiwowie05]

Ban all companies from filing bankruptcy

[@chris-vl8ps]

Must have something to do with wall street?

[@trusselldavis2546]

Greed is the country's crisis

[@blasse2392]

Corporate greed what makes it collapse

[@calgreco8607]

I see no reason to invest any of my hard earned money in any part of the U.S. including the government.

[@ladontplaay]

The recession/depression

[@batliff]

Chasing infinite growth is a sickness.