Historically, an increase in bankruptcies is an indication that a recession is ending. People put off bankruptcies until the timing is best, and what better time to file than just when you think your future is about to change for the better.
2 posted on 5/16/02 4:08 PM Pacific by connectthedots
That's one interpretation. Another would be that people don't feel the effects of a recession immediately, and they don't feel the benefits of coming out of a recession immediately either. Those who have been laid off often reach rock bottom in a delayed fashion. It isn't always mismanagement on their part. Many people who think they're secure going into a recession, find out they aren't about halfway through. And it's also hard for individuals to guage how deep a recession will be going in, something that even Alan Greenspan f---s up on once in a while.