A very ominous trend currently spreading across the corporate sector is sparking panic that a crash not unlike the one that devastated the nation in 2008 lies in the near future.
According to Standards & Poor’s Ratings Services, 46 companies have defaulted on their debt in the past few months, with five defaulting this week alone. Chillingly, 37 of the 46 companies are based in the United States.
The economic malaise hasn’t stopped there, however. Coal corporation Peabody Energy and beach wear retail outlet Pacific Sunwear both announced that they will be seeking protection from bankruptcy this week. This comes in the wake of massive decreases in the shares of the two companys, with their respective values falling by almost 100%.
Several factors are blamed for this unfortunate turn of events, including a significant implosion in oil prices that severely weakens energy companies and the Federal Reserve hiking short-term interest rates. In any case, it sounds like the road is being paved for another major crash.
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They think boosting interest rates will slow an overheating economy, Ha, Ha, Ha. Madness, Wall Street is addicted to the notion of quick money and double digit returns. In other words, unsustainable #s. Welcome to the new economy, same as the old economy. The media will report on entertainment news and the presidential race as the economy tanks, Obamas Legacy.
Yes the$#%&!@*is going to drop right out of the dollar as the easing is useless .u give money to banks after they made a bollox of it in the first place .give it to the people they will spend it .
Is Obama concerned?? Or Congress??? That alone tells you we need to clean house!
Ya think.
Marshall law yep
Thank you Me obama this is cause and effect no jobs no one buying
who cant see whats actually happening here in America ?!
Uh,,, duh????
Oh there are crashes coming.
Derivatives
Student loans
Fiat currencies
Municipal bonds
It’s going to be ugly
It is not “if” but when!