Trouble seems to be cooking for the US economy, as the country could be at the brink of a major financial crisis based on the recent symptoms around the corporate sector. The US financial crisis of 2008 has still not been forgotten and its horror may still come back to haunt Americans as there are certain indicators pointing towards the same.
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Increase in corporate bankruptcies
The sudden rise in US corporate bankruptcies, which is now staring at the highest level since the 2008 financial crisis, is becoming a major headache for the US economy. Companies are currently grappling with high rising debts , which is being driven by high interest rates that resulted in a sudden spike in borrowing costs.
In 2024 itself, 686 companies filed for bankruptcy, which is a major uptick from 2023. According to The Guardian’s report, this figure was almost more than 2021 and 2022 combined. There has also been a major increase in bankruptcy filings, which is definitely no good news for the national economy.
Popular companies also filing for corporate bankruptcy
Among the list companies that filed for bankruptcy in 2024, some popular names like Tupperware, Red Lobster, and Spirit Airlines are also present, which is an alarming statistic. Even the very popular vodka brand in US, Stoli, filed for bankruptcy in November.
