PREPARE: More Bankruptcies Are Ahead
Published: 2024-04-27
Status:
Available
|
Analyzed
Published: 2024-04-27
Status:
Available
|
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
Several large US companies, including The Body Shop, Joan Fabrics, and Express, have filed for bankruptcy in recent months.
"we've seen a number of big companies go bankrupt we saw the body shop go bankrupt we saw Joan Fabrics file for bankruptcy and more recently we just saw Express file for bankruptcy as well"
Pending
An increasing trend of major companies filing for bankruptcy is observed in the US.
"in the last couple of months we've seen a number of big companies go bankrupt"
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Saks Fifth Avenue's payment delinquency has surged from 18% in October 2023 to over 98% by February 2024.
"October 2023 saaks Fifth Avenue was behind on about 18% of their bills but by February 2024 saaks Fifth Avenue was behind on more than 98 8% of their payments due"
Pending
US consumers are facing financial constraints, leading to a reduction in discretionary spending.
"people are running out of money and they can't keep spending with this discretionary money that they don't have anymore"
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Consumer shopping habits are shifting, with a decrease in mall visits and an increase in online spending.
"people are not going to malls the ways that they used to before because they're spending more money online"
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Commercial real estate foreclosures have been steadily rising over the past 12 months.
"over the last 12 months we've been seeing this steady rise in commercial real estate foreclosures"
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Businesses will face significantly higher debt servicing costs in 2024 and 2025 as their existing debt readjusts at current higher interest rates.
"businesses have to now pay the higher debt servicing costs because that debt readjusts in 2024 or 2025 and if interest rates are a lot higher like they are today than they were a few years ago well that means the business is going to have to pay much higher cost to service the debt"
Pending
For most Americans, wage growth has not kept pace with the rising cost of living due to inflation.
"wages just haven't kept up with this higher cost of living and so now if your wages have grown great but for a lot of Americans in fact most Americans wages haven't grown fast enough to keep up with the higher cost of living"
Pending
Corporate debt taken on in 2020-2021 is starting to mature in 2024, with more scheduled to mature in 2025.
"that debt isn't a 30-year fixed day mortgage this debt is starting to come due in 2024 more of it is going to come due in 2025"
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Credit card debt in the US has reached a record high.
"credit card debt has broken a record high"
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Credit card debt has reached a record high, indicating an increasing reliance on financing to purchase goods, even for those who cannot afford them.
"credit card debt has broken a record high so more people are using financing to buy the same stuff that they were before even though they can't afford it"
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A record number of Americans are making hardship withdrawals from their 401(k) accounts.
"we've also seen a record number of Americans use a hardship withdrawal of their 401k to pull money out of their retirement accounts"
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A record number of Americans are making hardship withdrawals from their 401k accounts.
"we've also seen a record number of Americans use a hardship withdrawal of their 401k to pull money out of their retirement accounts"
Pending
Businesses are experiencing increased costs for labor, rent, and product procurement.
"businesses have to pay more money for their employees businesses have to pay more money for their rent or their property costs businesses have to pay more money to buy their products"
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Bankruptcies are increasing in the US, with notable companies like The Body Shop, Joan Fabrics, and Express filing for bankruptcy in recent months.
"bankruptcies are on the rise here in the United States in the last couple of months we've seen a number of big companies go bankrupt we saw the body shop go bankrupt we saw Joan Fabrics file for bankruptcy and more recently we just saw Express file for bankruptcy as well"
Pending
A significant amount of corporate debt taken on in 2020-2021 is maturing in 2024 and 2025.
"this debt is starting to come due in 2024 more of it is going to come due in 2025"
Pending
For most Americans, wages have not kept pace with the rising cost of living due to compounding inflation since 2021.
"wages just haven't kept up with this higher cost of living and so now if your wages have grown great but for a lot of Americans in fact most Americans wages haven't grown fast enough to keep up with the higher cost of living"
Pending
In 2024, stores such as Dollar Tree, Foot Locker, Bed Bath & Beyond, and Macy's have closed some of their locations.
"just in 2024 we've seen stores like Dollar Tree Foot Locker Bed Bath and Beyond and Macy's all shut down some of their stores"
Pending
Businesses will face significantly higher costs to service their debt due to the current higher interest rates compared to a few years ago.
"if interest rates are a lot higher like they are today than they were a few years ago well that means the business is going to have to pay much higher cost to service the debt"
Pending
In the period of low interest rates, some companies used debt to reinvest in their business (hiring, R&D, expansion), while others used it to enrich shareholders through buybacks and dividends.
"some of these businesses took this debt and they Ed it to reinvest back into the company they use this to hire more people invest in R&D research and development to open more stores and do more things to invest in the brand ... the second thing that some businesses did is it took on a whole bunch of debt and then they used this debt to make well their shareholders richer how by purchasing a lot of stock through share BuyBacks or about potentially paying out dividends"
Pending
In 2024, several retailers including Dollar Tree, Foot Locker, Bed Bath & Beyond, and Macy's have closed some of their stores.
"just in 2024 we've seen stores like Dollar Tree Foot Locker Bed Bath and Beyond and Macy's all shut down some of their stores"
Pending
Inflation is not decreasing as widely anticipated.
"inflation is not coming down the way that a lot of people expected"
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There has been a consistent increase in commercial real estate foreclosures over the past 12 months.
"over the last 12 months we've been seeing this steady rise in commercial real estate foreclosures"
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Rising commercial foreclosures are adding further stress to an already struggling US banking sector.
"putting more stress on the banking sector at a time where the banking sector was already struggling"
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