A Tidal Wave of Bankruptcies Is Coming: Experts foresee so many filings in the coming months that the courts could struggle to salvage the businesses that are worth saving

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Let them fail. That’s what it means to be capitalist! They over leveraged and couldn’t survive hard times. The economy goes into the dump for a bit people retrain and holes in the market get filled with new growing strong companies. Most will probably just file ch 11 anyway and will reorganize and hopefully come out stronger and more stable financially. Let the airlines fail, let the banks that are sneakily taking on risky debt fail. Yeah the economy will be fucked for a bit but at least new people will get to try and compete to fill the gaps. This is obviously a gross simplification of the economics behind a financial crash and the damage it would do but American can’t go around pretending it’s some magestic capitalism and then not take the bad with the good.

jx24

Guess we will see how many banks and funds are over exposed to the CLO market.

QueefyConQueso

Get your house in order if it’s not already, it’s about to be a bumpy ride!

Bucko357

Unfortunately it (possibly unintended) had a way of damaging small businesses leading to a consolidation of stronger large corporations who have the means of being liquid for longer periods and had record months in sales because the laws were conveniently written in their favor. If you sold groceries, like Walmart, Sams, or Costco, people could shop every other item in your store. If you just sold clothing, or toys, or bikes you were out of business.

james9940

This might be a good way to weed out third rate zombie companies, for the old Wall Street saying is “a hundred thousand fudge sucking tourists is not an economy.”

TheLoneComic