Surge in Bankruptcy Filings Raises Concerns of Impending Financial Crisis in 2023

Bankruptcy Filings Surge to Dangerous Levels

According to a recent warning by Whalechart on Twitter, bankruptcy filings have reached “dangerous levels,” comparable to the Great Recession of 2008 and the COVID-19 pandemic of 2020. This alarming statement is supported by a report from Cornerstone Research, which reveals a significant increase in large corporate bankruptcies during the first half of 2023.

More Bankruptcies, Lower Assets

The report by Cornerstone Research highlights that there were 72 bankruptcy filings by public and private companies with over $100 million in assets during the first half of 2023. This figure already surpasses the total number of filings for the entire year of 2022. Additionally, the average assets at the time of these filings have decreased to $780 million, significantly lower than previous years.

The manufacturing, retail trade, and services sectors have been hit the hardest by this wave of bankruptcies. Manufacturing alone accounted for 33% of all filings in the first half of 2023. Furthermore, there has been an increase in “mega bankruptcies” filed by companies with over $1 billion in reported assets.

The Crypto Angle

While the cryptocurrency market is known for its volatility, these recent bankruptcies may indicate that the challenges faced by the traditional financial system are impacting decentralized finance as well. It is essential for both individual investors and corporate strategists to reassess their financial plans in light of these alarming bankruptcy statistics.

Hot Take: Caution Is Key in Navigating the Financial Waters of 2023

With bankruptcy filings reaching dangerous levels and large corporate bankruptcies on the rise, it is crucial to approach financial decisions with caution. Whether you are invested in blue-chip stocks, cryptocurrencies, or emerging markets, it is important to be mindful of the potential economic downturns and stock market crashes that may follow. Stay informed and adjust your financial game plan accordingly in order to navigate the uncertainties of 2023.