Let's talk about the Trump bankruptcy surge.... - Belle of the Ranch

[TexasTowelie]

Well, howdy there Internet people. It's Belle again. So, today we're going to talk about the Trump bankruptcy surge.

The US is seeing a surge in bankruptcies. Between higher costs due to inflation and tariffs, a tighter credit environment, and ongoing volatility, and well, pretty much everything. it's been hard for a lot of companies and it's been impossible for many. It goes beyond the billion-dollar bankruptcies you've heard about like Claire's, Del Monte, Spirit Airlines, and so on. Reporting says that this year has had the highest number of large corporate bankruptcies since 2010 and we don't even have December's numbers yet.

You would think that would be the bad news, but it's actually not. Generally surges and bankruptcies are confined to a specific industry. It occurs in trends. A bunch of companies in a single industry go under because consumer tastes change or because one company in that industry came up with something innovative and got more of the market share. Or maybe they use political connections to get an edge. Either way, it's normally confined. Not so during Trump's golden age economy. It's spread out in a way that you really don't see outside of a big financial crisis. And it's not just the big boys either.

The various kinds of filings used by small companies and individuals are also reportedly up by anywhere from 8 to 11% depending on the chapter type. American households carry more than $18.5 trillion in debt. The bankruptcy surge is yet another glaring red flag that the Golden Age is gilded at best.

That brings us to a question that has come in a few times in a few different ways from a few different people. "During Biden, the economy felt bad and economists said it was getting better, but we didn't feel it yet. Trump is now starting to sound a lot like Biden. Is it getting better or not?"

The K-shaped economy is very much in effect. The top has a pretty good economy currently. The bottom doesn't, and it's getting worse. The term K-shaped recession is being thrown out to describe the effects on the bottom part of the economy. A lot of topline numbers people use as shorthand for the economy like the Dow are giving positive signs, but a lot of them are untethered from the underlying economics. There's sign after sign saying the stock market is running too hot and the valuations are too high.

In short, if you're working class, this economy isn't good for you if you're on top. Well, right now it looks volatile, but okay. However, all of the signs are there that it's going to turn at any moment. As far as the Biden economy's soft landing, that was destroyed April 2nd when Trump decided to upend international trade because of some reshoring fever dream.

Anyway, it's just a thought. Y'all have a good day.