Watchman: The United States, Along with Virtually Every “Developed” Country, Are Effectively Bankrupt

Watchman Warning: The Beginning of a Crash? Massive increase in filings from large companies compared to 2010 levels… The US has transitioned from more than a decade of quantitative easing to more recent quantitative tightening. QT will remain until the Federal Reserve is finished squashing inflation. However, such a massive paradigm shift in markets might result in a period of deleveraging among highly levered firms that were able to flourish during the QE era.  New Bloomberg data shows large companies (at least $50 million of liabilities) filing for bankruptcy topped 20 this month, the highest in any other January dating back to 2010. Back then, 25 filings were seen as the economy was still reeling from the aftermath of the GFC. There is no doubt after more than a decade of the Fed unleashing trillions of dollars of credit into…

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California ‘Utterly Failing’ as 2 Million Residents Waiting for Unemployment Checks, It’s Going to Get Bad

Chaos Will Take the Place of Democratic Propaganda, Here Comes Tribulations… Approximately two million Californians are still waiting for their unemployment checks from the first three months of the government-mandated COVID-19 lockdowns, according to the San Jose Mercury News which cites government data. Unemployed residents are complaining of clogged phone lines and outdated technology at the Employment Development Department (EDD) despite Gov. Gavin Newsom (D) promising to increase staffing among other reforms. “I have done just about everything I know how to do as a public official to make things work, but my colleagues, my staff, my constituents and I are at our wits’ end,” said state Assemblymember David Chiu (D-San Francisco) in a tweet. “I know people who are on hold every day and can’t get a response,” said San Francisco resident Armand Domalewski, a workforce development expert who co-created a Facebook group…

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“Biblical” Wave Of Bankruptcies Is About To Flood The US

Bankers Know The Collapse Of Society Is Coming,The Sin Of Greed… One of the silver linings of the coronacrisis to date is that despite the unprecedented collapse in the broader economy and the 30 or so million unemployed, the pace of bankruptcy filings has been relatively steady compared to the pre-covid levels, as the following Goldman chart shows. Unfortunately the relative calm is not meant to last, because as we observed last month, Moody’s recently expanded its “B3 Negative and lower list” which soared to its highest tally ever — 311 companies. That tops a former peak of 291 companies, reached during the credit crisis of 2009 and the commodity-related downturn in April 2016. At 20.7% of the total rated spec-grade population, the list also shot up above its long-term average of 14.8%, and closing in on its all-time high of 26.1%. This…

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Middle-Class Death Spiral: Consumers Have Never Been In More Debt, And Bankruptcies Are Surging

Paul’s charge to us in Romans 13:8 to owe nothing but love is a powerful reminder of God’s distaste for all forms of debt that are not being paid in a timely manner (see also Psalm 37:21). At the same time, the Bible does not explicitly command against all forms of debt. The Bible warns against debt, and extols the virtue of not going into debt, but does not forbid debt. The Bible has harsh words of condemnation for lenders who abuse those who are bound to them in debt, but it does not condemn the debtor. This wasn’t supposed to happen.  During the relative economic stability of the past few years, the middle class was supposed to experience a resurgence, but instead, it has just continued to be hollowed out.  The cost of living has risen much faster than wages have, and…

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