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