U.S. corporate bankruptcies have reached their highest level since 2010.
Many American companies have been stumbling in the wake of the pandemic due to increasing interest rates, supply-chain issues, and rising costs.
Several of the firms have filed for bankruptcy after access to low interest loans and access to easy money began to wane.
“For 2009, there were 118 bankruptcies through April. In COVID-impacted 2020, there were 71 bankruptcies. In 2023, there have been 70. This is the third worst start to the year since 2000,” said Mike Shedlock, an economist.The Federal Reserve is predicting a mild recession by the end of this year, with an expected rise in unemployment.
More Bankruptcies Expected in 2023
The number of American companies that have already gone bankrupt in 2023, in the first four months the year, has reached its highest level since 2010, according to data from S&P Global Market Intelligence.
“I’m not predicting something worse than 2008,” said hedge fund investor Stanley Druckenmiller during the 2023 Sohn Investment Conference, reported Fortune.
