As of now, there hasn’t been a record number of bankruptcies among companies with assets above $50 million. The Bloomberg Bankruptcy Index, which considers both the size and number of bankruptcies, remains relatively low. This suggests that while smaller companies, particularly in the mortgage and real estate sectors, may be struggling, larger financial institutions have not yet faced significant distress.
This situation is reminiscent of the period leading up to the 2007-2008 financial crisis, where smaller entities began to fail before larger institutions were affected. The current credit conditions have not deteriorated sharply, and losses, especially in commercial real estate (CRE), have not been fully recognized, which could explain the muted bankruptcy index.
Using strictly companies above $50MM in assets, I don't see a new record. But importantly, we have yet to see a "major" bankruptcy in the financial sector as credit conditions have not yet deteriorated sharply and losses, especially in CRE, have not been recognized. The Bloomberg… t.co/c3tjEJPtRc pic.twitter.com/0kiBKqCPwZ
— Michael Green (@profplum99) July 19, 2024
US ECONOMY NOW HAS:
1) 39 MONTHS OF CPI INFLATION AT 3% OR ABOVE
2) Jobs OVERSTATED in 2023 by 730K
3) 346 BIG bankruptcies in 2024, most in 14 yrs
4) $2.1tn excess savings gone in 3 yrs
5) 1.5M jobs lost in 6 months
6) $34.9 tn NATIONAL DEBT – record👇t.co/KQIHG0FcSM— Global Markets Investor (@GlobalMktObserv) July 19, 2024
In the United States, charge-off rates for CRE loans have risen above levels last seen during the pandemic: t.co/Oo1v7JKTeh
— Reef Insights (@ReefInsights) July 19, 2024
Guys I'm starting to think all the "rich" people were just broke people with mortgages larping as successful people pic.twitter.com/6bTDt6558e
— Darth Powell (@VladTheInflator) July 19, 2024
Owners living in hell: