Business Bankruptcies of Major Companies Hit Record Not Seen Since Just Before Great Recession

In a stark manifestation of the economic turmoil gripping the United States, the past week has witnessed an unprecedented surge in major corporate bankruptcies, according to data compiled by Bloomberg.

This alarming trend, which mirrors the darkest days of the Great Recession, underscores the far-reaching consequences of the Biden administration’s misguided economic policies, colloquially known as “Bidenomics.”

Michael Hunter, vice president at Epiq, a legal services company that tracks insolvency filings, attributes this troubling uptick to the combined effects of higher interest rates and a pullback in consumer spending. “Total bankruptcies — including consumer, small business and big corporates — have been climbing steadily for 20 months,” Hunter stated.

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The past three days alone have seen nine major companies, spanning industries from telecommunications to pharmaceuticals, seek refuge in Chapter 11 bankruptcy protection.

Notably, five of these cases were filed in Delaware, a hub for corporate restructurings due to its favorable incorporation laws.

Bankruptcy lawyer Derek Abbott, of Morris, Nichols, Arsht & Tunnell, notes that while the overall economy may appear to be dodging predictions of a recession, certain sectors are undeniably struggling. “We have such a broad and diverse economy that even when there is good stuff happening overall, there is a portion of the business sector that is still struggling,” Abbott explained, citing headwinds faced by the telecom, retail, and pharmaceutical industries.

The first quarter of 2024 saw a staggering 43% increase in commercial insolvencies compared to the same period last year, according to Epiq.

As the nation grapples with the fallout of Bidenomics, characterized by burdensome regulations, higher taxes, and a general anti-business sentiment, experts predict that bankruptcy filings will continue to rise throughout the remainder of the year.

This wave of corporate failures serves as a sobering reminder of the unintended consequences of misguided economic policies.

As businesses buckle under the weight of an increasingly hostile economic environment, it falls upon policymakers to reevaluate their approach and seek solutions that foster growth, innovation, and stability.

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Failure to do so risks plunging the nation into a prolonged period of economic malaise, with far-reaching implications for businesses and households alike.