Americans households are about to get hit by a devastating wave of bankruptcies | |
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Anonymous Coward User ID: 78948862 United States 05/24/2020 10:38 AM Report Abusive Post Report Copyright Violation | [link to www.businessinsider.com (secure)] Quoting: money$$$ Unemployment is soaring due to the coronavirus pandemic and a wave of consumer bankruptcies is almost guaranteed to follow. But there are ways that lenders and Congress can help lessen the pain from this bankruptcy wave. Sushrut Jain is an economist at Edgeworth Analytics. Dr. George Korenko is an economic expert witness at Edgeworth Analytics. The US has been hit by an unprecedented wave of unemployment since the start of the coronavirus pandemic. Nearly 39 million Americans have filed new unemployment claims and the unemployment rate has hit a staggering 14.7%. This crisis, however, has yet to roll over into a second wave of consumer bankruptcy filings, with fewer than 40,000 reported in April – a ten-year low for the month. While businesses and individuals can declare bankruptcy, individuals make up the vast majority of filings. Due to the high correlation between unemployment and consumer bankruptcy, a surge of filings can be expected in the coming weeks. This will likely result in the contraction of the credit industry, with the most in-need borrowers potentially finding it more difficult to access credit. The magnitude of this bankruptcy wave, however, will be determined by three factors: the amount US households owe divided by the amount they earn, the impact of Congress' attempts to rescue the economy, and what creditors do from here. Two indicators of bankruptcy Studies reveal Americans typically file for bankruptcy after costly economic events, like job loss, divorce, illness, or injury. Depending on the study, between 33% and 66% of bankruptcy filers cite job loss as the cause. Per data from the Bureau of Labor Statistics and American Bankruptcy Institute, there is a near-perfect correlation between the quarterly individual bankruptcy and unemployment rates since 2006. Considering the current drastic unemployment spike, a bankruptcy surge is almost certain to follow. A high aggregate household debt-to-income ratio can also indicate future bankruptcy filings. Household debt can include mortgages, credit cards, and auto and student loans. In 2007, just before the Great Recession, the aggregate household debt-to-income ratio peaked at 1.24, meaning on average, households had nearly 25%more debt than income. Today, that number is a much healthier 0.95, which should ease the severity of the bankruptcy crisis. But the banks and walstreet just got 10 trillion from Americans! Something ain’t right Thanks suspect a massive robbery just took place at very least ! |
Anonymous Coward User ID: 71594995 United States 05/24/2020 10:45 AM Report Abusive Post Report Copyright Violation | the wave has just started and this thing is going to be huge and ugly. I don't think much will be left standing when it goes back out. Except for the large interconnected businesses that have access to the magical money tap of the fed |
Anonymous Coward User ID: 78948862 United States 05/24/2020 10:46 AM Report Abusive Post Report Copyright Violation | ... individuals make up the vast majority of filings. Due to the high correlation between unemployment and consumer bankruptcy, a surge of filings can be expected in the coming weeks. Quoting: money$$$ How can you go bankrupt when you're getting more than $600 a week in funemployment? The people got really almost nothing compared the Wall Street ! But the people did lose almost all their businesses while the big gov told you to direct your spending to the o my stores allowed to be open, the big corporations like Walmart and amazon. Gov killed the regular Americans economy |
Anonymous Coward User ID: 69667897 United States 05/24/2020 10:49 AM Report Abusive Post Report Copyright Violation | ... individuals make up the vast majority of filings. Due to the high correlation between unemployment and consumer bankruptcy, a surge of filings can be expected in the coming weeks. Quoting: money$$$ How can you go bankrupt when you're getting more than $600 a week in funemployment? You would be amazed at the debt and expenses some people have. They are so leveraged that $1000/wk doesn't cover it. |
Anonymous Coward User ID: 78118646 United States 05/24/2020 10:51 AM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 77053491 United States 05/24/2020 10:54 AM Report Abusive Post Report Copyright Violation | |
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nwo_watcher_911
User ID: 78515238 United States 05/24/2020 11:11 AM Report Abusive Post Report Copyright Violation | You don’t even need to be an attorney to do bankruptcies. Anybody getting into this biz right now?? Seems to me people wouldn’t file unless they had a reason to: you don’t file when you’re still losing, you file when you’re able to do something but the debt is preventing you - why would someone lose their job then file or get divorced then file? Seems like you’d file then get married, file knowingva new job is lined up, etc. |
wisconsin
User ID: 78935972 United States 05/24/2020 11:17 AM Report Abusive Post Report Copyright Violation | . ... rihnos/fauci/gates/soros/barry/etc. ... . . Our family celebrates The Lord's Feasts: [link to www.grafted-promise.net] Fools and the dead don't change their minds. Fools won't and the dead can't. When you tear out a man's tongue, you are not proving him a liar. You are only telling the world that you fear what he might say. Quoting: CountryWise Amos 5:13 - Therefore at such a time the prudent person keeps silent, for it is an evil time. |
wisconsin
User ID: 78935972 United States 05/24/2020 11:18 AM Report Abusive Post Report Copyright Violation | . ... please explain ... . . Our family celebrates The Lord's Feasts: [link to www.grafted-promise.net] Fools and the dead don't change their minds. Fools won't and the dead can't. When you tear out a man's tongue, you are not proving him a liar. You are only telling the world that you fear what he might say. Quoting: CountryWise Amos 5:13 - Therefore at such a time the prudent person keeps silent, for it is an evil time. |
Anonymous Coward User ID: 1298661 United States 05/24/2020 11:21 AM Report Abusive Post Report Copyright Violation | ... individuals make up the vast majority of filings. Due to the high correlation between unemployment and consumer bankruptcy, a surge of filings can be expected in the coming weeks. Quoting: money$$$ How can you go bankrupt when you're getting more than $600 a week in funemployment? You would be amazed at the debt and expenses some people have. They are so leveraged that $1000/wk doesn't cover it. Right. In debt up to their eyeballs trying to keep up with the Jones's. Smart people live below their means. Know a mega rich couple and they both drive used cars. Also, the newly employed often do not have enough time on the books to qualify for UI. Know someone that applied and was turned down because they needed one more month of employment to qualify for benefits. |
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Anonymous Coward User ID: 76329990 United States 05/24/2020 11:22 AM Report Abusive Post Report Copyright Violation | |
wingnut1234
Keep Texas Free! User ID: 5897752 United States 05/24/2020 11:24 AM Report Abusive Post Report Copyright Violation | |
Triteia
User ID: 37760642 United States 05/24/2020 11:24 AM Report Abusive Post Report Copyright Violation | I am seeing break down in the supply chains. I am seeing way less employees at the businesses that are left. Entire rows of real estate is for sale. I just ordered some shoes and I had no problem with the first pair but I decided to get a summer pair too, lol! and there was a notice at the top of the page asking to allow additional time due to the employee availability from Covid-19. They were also “Out of stock” with no waiting list for many, many items. The few stores that you could get shoes from here have a line out the door. They are only letting in a few people at a time. With masks. I would suggest getting a new pair of good shoes and some food storage and stuff right now. This may be a long winter. But we will get through these things. I hope everyone is weathering the storm here and everyone is okay. Bankrupt is the best way to go if you find yourself over your head. Do it before you stress yourself out too much. You can do a Chapter 13 and keep certain things or a Chapter 7 that just gives you a new start. Financial times change in life. Money comes and goes. It is nothing to stress about. Rock n’ Roll baby! Last Edited by Triteia on 05/24/2020 11:26 AM Triteia |
~Jazz~
Forum Administrator 05/24/2020 11:27 AM Report Abusive Post Report Copyright Violation | All wars are bankers wars. To know where your heart is, look where your mind goes when it wanders. A rock in bad hands killed Abel. A rock in good hands killed Goliath. It isn't about the rock. A true warrior fights not because he hates the one in front of him, but because he loves those behind him. INTP-A |
Anonymous Coward User ID: 77914530 United States 05/24/2020 11:30 AM Report Abusive Post Report Copyright Violation | Many more bankruptcies will come because this is only the beginning. Here is a more detailed list. [link to youtu.be (secure)] |
Anonymous Coward User ID: 71594995 United States 05/24/2020 11:31 AM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 71594995 United States 05/24/2020 11:32 AM Report Abusive Post Report Copyright Violation | they don't even care anymore. who is going to take over or purchase these properties after eviction? will there be anyone left with the funds to buy them? ... oh, thats right..big corps will swoop in to save the day, buying them up and converting to rentals ... for the common good and all |
Anonymous Coward User ID: 77757394 United States 05/24/2020 11:34 AM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 77757394 United States 05/24/2020 11:36 AM Report Abusive Post Report Copyright Violation | privately owned FED will at the end own everything, including you and your children while you'll be forced to live of food stamps, trust the plan Quoting: Anonymous Coward 77757394 The Fed hired BlackRock Inc. to purchase these securities and handle the administration of the SPVs on behalf of the owner, the Treasury. In other words, the federal government is nationalizing large swaths of the financial markets. ... This scheme essentially merges the Fed and Treasury into one organization Nationalization, or nationalisation, is the process of transforming private assets into public assets by bringing them under the public ownership of a national government or state. Nationalization usually refers to private assets or assets owned by lower levels of government, such as municipalities, being transferred to the state. The opposites of nationalization are privatization and demutualization. When previously nationalized assets are privatized and subsequently returned to public ownership at a later stage, they are said to have undergone renationalization. Industries that are often subject to nationalization include telecommunications, electric power, fossil fuels, railways, airlines, iron ore, media, postal services, banks, and water. [link to en.wikipedia.org (secure)] make communist America great again |
Larence
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zzbudzz
User ID: 78949297 United States 05/24/2020 11:43 AM Report Abusive Post Report Copyright Violation | |
Anonymous Coward User ID: 78350460 United States 05/24/2020 11:48 AM Report Abusive Post Report Copyright Violation | ... individuals make up the vast majority of filings. Due to the high correlation between unemployment and consumer bankruptcy, a surge of filings can be expected in the coming weeks. Quoting: money$$$ How can you go bankrupt when you're getting more than $600 a week in funemployment? gee, i dunno, maybe your income/bills is 10x that? Gee, maybe millions have yet to see a dime? |
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Adam Jacobs
User ID: 78943903 United States 05/24/2020 11:55 AM Report Abusive Post Report Copyright Violation | how the hell does this mass stupidity help anyone in any sector of the economy. this was a conspiracy of government employees to fuck everything up not realizing where paychecks actually come from then they pretend it's all about 'science' when they tell people it's a law they have to wear masks and cite Dr. Fauci even though Dr. Fauci said it's not necessary to wear a mask |
girlie45
User ID: 76604177 United States 05/24/2020 11:59 AM Report Abusive Post Report Copyright Violation | ... individuals make up the vast majority of filings. Due to the high correlation between unemployment and consumer bankruptcy, a surge of filings can be expected in the coming weeks. Quoting: money$$$ How can you go bankrupt when you're getting more than $600 a week in funemployment? Because once it ends - and every one has spent their stimulus on cheap stuff from Walmart and Ross - The real truth will be apparent. We are screwed. They gave us all of this extra money to prop up the sagging economy- yes it was sagging in some areas. Problem is, the shut down killed a bunch of businesses, the supply chain is jacked, and some jobs may never come back. When you take into consideration that we will have a second wave, it's apparent that things are not getting better in Mid August, it will be worse. How bad remains to be seen. Last Edited by girlie45 on 05/24/2020 12:06 PM |