Posted on 04/06/2023 9:36:18 AM PDT by SeekAndFind
Small businesses across the United States are experiencing a surge in bankruptcies, surpassing levels not seen since 2020. According to a UBS note reviewed by The Epoch Times, conditions could become worse as the knock-on effects from the recent banking crises begin to manifest.
A person holds a sign advertising a sale at Century 21, a retail outlet that announced it was filing for bankruptcy and closing its stores due to the economic impact of the COVID pandemic, in New York City, on Sept. 26, 2020. (Andrew Kelly/File/Reuters)
The note from UBS Evidence Lab shows private bankruptcy filings in 2023 have exceeded the highest point recorded during the early stages of the COVID pandemic by a considerable amount. The four-week moving average for private filings in late February was 73 percent higher than in June 2020.
“[We] believe one of the more underappreciated signs of distress in U.S. corporate credit is already emanating from the small- and mid-size enterprises sector,” Matthew Mish, head of credit strategy at UBS, wrote in a recently published research note. “[The] smallest of firms [are] facing the most severe pressure from rising rates, persistent inflation and slowing growth.”
Industries hit hardest by the wave of bankruptcies include real estate, health care, chemicals, and retail outlets, according to the Swiss Bank’s report.
The Federal Reserve’s monetary tightening to combat inflationary pressures has been largely behind the uptick in bankruptcies. UBS indicated that the fear of a credit crunch has further worsened the rise in defaults.
Credit conditions are tightening across the spectrum. Large businesses and individual borrowers are feeling the heat as well.
As of February 2023, the monthly bankruptcy filings exceeded 31,000, an 18 percent rise from the 25,564 bankruptcy filings reported in February 2022, according to data provided by the American Bankruptcy Institute. The increase in Chapter 11 bankruptcies—typically used by larger businesses—rose by 83 percent over the same period, with 373 total filings in February of this year.
The White House has downplayed the current economic challenges and their impact on small businesses. Last week, for example, President Joe Biden cited higher rates of new business formation over the past three years—without acknowledging the issues entrepreneurs face.
“When I came into office, this economy was reeling. Small businesses were hurting. Literally hundreds of thousands of small businesses had closed across the country. Millions of Americans, many of whom worked in small businesses, lost their jobs through no fault of their own,” he said. “To jumpstart American economic recovery, we needed to help the small businesses, and we needed to help them fast. So we got to work.”
The president claimed that the American Rescue Plan Act of 2021 helped the economy by providing emergency loans to millions of businesses.
Still, the administration is set to raise the corporate income tax to 28 percent sometime in the coming months. The tax hike will affect small businesses at a time when credit conditions continue to tighten.
Isn’t Century 21 a realtor, not a retailer?
Will voters remember that next year? No chance in hell. The stupid is baked in.
The best economy in history!.........
Small businesses are filing for bankruptcy at a higher rate than at the peak of the pandemic - and a looming credit crunch could make things worse
Market Insider ^ | 4/3/23
Posted on 4/3/2023, 6:40:20 AM by EBH
https://freerepublic.com/focus/f-news/4142826/posts
What did the azzholes in government and the fed expect would happen when they needlessly pumped FIVE TRILLION into the economy when people weren't working?
All of this can be laid at the feet of the GD government's inept response to COVID and you can in the ultimate blame on Fauci and the CCP.
“Will voters remember that next year?”
If they DO remember, it’ll because the MSM will be trumpeting “Trump’s Fault!! Biden inherited a mess and is doing the best he can with the disaster Trump created.”
Dan Bongino predicted this.
I’m guessing it’s a Century 21 property and they are looking for a new tenant while the old tenant broadcasts “Going Out Of Business.
None better! Ever!!
I used to think it was people were uneducated, I am now more apt to believe people have been indoctrinated to only trust people called experts, or credentials, etc. They have lost their ability to think and reason for themselves. And worse? If they do they are ostracized, called conspiracy nuts, etc.
This is how dangerous and powerful the media and internet has become. Heck, one cannot find truthful news without purposeful searching, which can and does become exhaustive for many. And once found those sources are scorned by the indoctrinators.
Stupid baked in? I guess in a way you can say that, but it is mass indoctrination. And they do not even realize what has been done to them.
RE: What did the azzholes in government and the fed expect would happen when they needlessly pumped FIVE TRILLION into the economy when people weren’t working?
Not only that, Small Businesses are in the eyes of the Biden regime, considered RICH. They are even as I write this,
1) Considering INCREASES in their taxes. So no, anything above $400,000 will be taxed at an INCREASED rate.
2) Hiring 87,000 ADDITIONAL IRS agents ( who are required to know how to use firearms ) to monitor them.
3) Regulating them to death.
What difference would it make?
Voters already suffered from inflation in 2022, yet Democrats were still able to steal plenty of elections.
Other forward looking economic indicators forecast rough times, particularly on the consumer front. These include personal debt ratios and repossessions. There’s a helluva lot of people living paycheck to paycheck and concurrently maintaining their standard of living through debt. That does not end well for individuals or banks.
I doubt that's the real reason for attacking small businesses. The real reason:
Small businesses are a source of independence for non-woke owners.
By contrast, oligarchic corporations impose wokeness on employees, and partner with NGOs and the surveillance state to crush resistance to the NWO.
About 50% of the voters pay no income tax and rely on handouts from the government. They will vote for who gives them the most in handouts with little responsibility.
>Heck, one cannot find truthful news without purposeful searching, which can and does become exhaustive for many.
Try yandex.com. It’s a Ruskie search engine and the zeepers will likely whine but the results are much less filtered than any of the US engines.
President Retard did that
He’ll trot that goofy lesbo girl out to claim it’s a myth
Libtards will believe her
Small businesses are a source of independence for non-woke owners.
By contrast, oligarchic corporations impose wokeness on employees, and partner with NGOs and the surveillance state to crush resistance to the NWO.
You aren’t wrong:
They Trust Experts—Gen Z trusts experts including doctors (77 percent), scientists (75 percent), and educators (74 percent) above all, while trusting less the traditional authority figures of CEOs (50 percent), Government leaders (47 percent) and traditional celebrities (50 percent). Another possible interpretation of the data is higher trust for those who take care of them and others.
They Also Trust Those Close to Them—Their top sources of inspiration are family members (88 percent) and friends (84 percent), in sharp contrast to politicians (42 percent) and religious leaders (44 percent) who represent more distant institutions
https://www.edelman.com/insights/sensible-generation-gen-z-and-trust
The “experts” they trust are leftists and atheists. This is the end result of Americans foolishly pushing “education” for the last 30 years. They didn’t notice that “education” is controlled by leftist-atheists.
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