Bankruptcies Soar: The Fall of Iconic Brands and the Rise of Unemployment Woes! 😱

by

Ah, the grand theatre of American commerce, where once-mighty titans now bow to the inevitable curtain call of bankruptcy! It appears that our dear companies are filing for insolvency at a rate reminiscent of the dark days of July 2020, as revealed by a rather alarming report.

In a rather dismal financial update from August, S&P Global has informed us that a staggering 446 bankruptcies have graced the stage year-to-date by the end of July, the highest for this seven-month period since the halcyon days of 2010. One must wonder if the ghosts of failed enterprises are now haunting the boardrooms!

This delightful data includes those companies with public debt and assets or liabilities of at least $2 million, or private entities with a mere $10 million at the time of their dramatic exit. How quaint!

Among the fallen are some of America’s most recognizable brands, such as the ever-optimistic Forever 21, the fashionista’s favorite Claire’s, and the once-ubiquitous Del Monte. One can only imagine the collective sigh of despair from shoppers everywhere!

It seems that the industrial sector has taken the lead in this tragic ballet of bankruptcies, closely followed by the consumer discretionary, healthcare, and consumer staples. A veritable feast of financial misfortune!

In a rather amusing thread on the social media platform X, macro analyst Adam Kobeissi has predicted that this wave of bankruptcies will likely usher in a delightful spike in unemployment. How charming! “Next, we expect the unemployment to surge,” he quips, as if it were a mere party trick.

In July, a staggering 11% of small businesses lamented that poor sales were their most pressing concern, the highest since 2020. A delightful leading indicator of impending doom!

Small firms, those charming little engines of employment, account for approximately 62.3 million workers, or 45.9% of all employees. A veritable army of the unemployed awaits!

And let us not forget the youth, who are now facing a surge in unemployment: the rate for graduates aged 20-24 has averaged a disheartening 8.1% over the last three months, the highest in four years. How nostalgic it is to revisit the levels of 2008!

In this delightful economic theatre, companies are now leaning on AI to trim costs and eliminate those pesky entry-level jobs. A true innovation in the art of cost-cutting!

Kobeissi, with a flair for the dramatic, suggests that this surge in unemployment will most likely compel the Federal Reserve to resume its interest rate cuts in September, lowering the Fed Funds Rate by 25 basis points. A prelude to a potential inflationary encore as we waltz into 2026!

Read More

2025-08-23 11:27