Let's talk about record corporate bankruptcies....

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Belle of the Ranch 4 min 1 speaker 6 chapters transcribed 1 month ago

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What are the record‑high US corporate bankruptcy numbers reported for July?

Belle of the Ranch 0:01

Well, howdy there internet people it spell again So today, we're going to talk about record corporate bankruptcies. So Let's start with the top line numbers and news and then dive in. Data from SP five hundred global indicates that US corporate bankruptcies in July reached the highest level since. Well, the last time Trump was in office. What's more is that it isn't a one off month. Large public and private company bankruptcy filings hit seventy one in July.

Why have corporate bankruptcies surged since the pandemic and the Trump administration?

Belle of the Ranch 0:38

That's up from sixty six in June. Numbers haven't been this high since july of twenty twenty. So Trump plus, you know, the whole worldwide global pandemic thing. But wait, there's more. Year to date bankruptcy filings hit four hundred forty six through the end of July. That's the most for this part of the year since twenty ten. At the current rate, this year is currently set to break totals from the worst part of the pandemic in twenty twenty. That year, six hundred and thirty nine declared bankruptcy.

Which well‑known companies have recently filed for bankruptcy and why?

Belle of the Ranch 1:15

four hundred forty six so far in twenty twenty five. And that's only through July. So why is it happening? SNP Global gives a couple of reasons. One is elevated interest rates, and the other is erratic US tariff policy putting pressure on costs and supply chains. It's important to remember these aren't small businesses. They're big companies. And brands you'd recognize.

How are rising interest rates and erratic tariff policies driving bankruptcies?

Belle of the Ranch 1:43

Del Monte, Forever 21, Ride, Joanne, places like that. For people who fly off into a moral panic when a company changes its logo a little bit and talk about tradition and heritage. They certainly don't seem to mind when companies are driven into the ground by bad policy. What does this mean for you? You made it through twenty twenties bankruptcies, right? Look, this is yet another indication that the economy has serious issues under the hood. There's no way to say this many bankruptcies is a good thing or normal or anything like that. It's not a good sign, said

What should listeners do to protect their finances if the economy worsens?

Belle of the Ranch 2:26

There are far worse signs out there as far as the economy. I know from the comments and the messages that a lot of you are trying to do what you can to better position yourself in case the bottom falls out. One of you sent a message about going through your budget with your partner and how it was annoying to cancel subscriptions and so on. And it took hours. You talked about what if it was all for nothing? And by some miracle the economy doesn't tank. Then you realized that doing the little things to shore up your budget is good no matter what happens. And that's true.

What are the potential risks of upcoming interest‑rate cuts and a weak job market?

Belle of the Ranch 3:06

I do want to caution people about a potential light at the end of the tunnel that could turn out to be a freight train. Based on comments from Jerome Powell, inflationary pressure exists. But they don't know how it will unfold. There's also worry about the job market. If interest rate cuts happen and the inflationary pressure is still present, Remember, the reason they're doing it is a bad job market. The reason I'm saying this is because if those cuts start happening, investors will probably get in their feelings and run even more on emotion. And headlines might turn up beat until the job numbers start weakening, or other cracks show if the job numbers are in doubt, for whatever reason. I wouldn't breathe a sigh of relief right away.

Belle of the Ranch 4:02

Anyway, it's just a thought. Y'all have a good day.

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