7 ms·
Bankruptcies increase 11.9 percent
- richardwhiuk 6mo agoSteadily increasing for five years
- morkalork 6mo agoAn interesting analysis would be to see how many and how often these posts of social order/societal breakdowns are making it to the FP here over time.
- kevin_nisbet 6mo agoThe tables in the link do a good job of outlining this, 11.9% while an interesting headline number, 11.9% increase over nothing is still basically nothing. However, with the tables going back to 2022, it's almost 100% increase of businesses and 50% increase for Non-business filings, which I find more interesting. Would be great to see the totals as population adjusted against historical context though.
- cman1444 6mo agoStill not very high by historical standards. In fact, it really just seems like we're approaching the pre-pandemic norm. https://www.congress.gov/crs-product/IN12536 https://www.congress.gov/crs-product/IN12536
- nippoo 6mo agoI can't find the original source, but I remember reading a study showing that this rise was closely correlated to states which had legalised or loosened laws on gambling!
- gwbas1c 6mo agoHaving recently seen a thread here where a lot of people threw a lot of shade on gambling: I really recommend finding that source. That being said: I'm more likely to believe inflation to be the cause; and I think it's a bad idea to use this to fan moral panic
- john_strinlai 6mo ago>I'm more likely to believe inflation to be the cause based on what?
- margalabargala 6mo agoBased on how much they like gambling.
- gwbas1c 6mo agoBecause increasing the cost of living will trigger bankruptcies in people who are living paycheck to paycheck and unable to afford the cost of living increase. (This is generally the cause that economists blame for increases in bankruptcy)
- kamikazeturtles 6mo ago> In states that allowed online betting, the study reported a 10% increase in the likelihood of bankruptcy and an 8% increase in debt collection amounts — outcomes that tended to appear about two years after the practice was legalized. https://www.npr.org/2026/04/04/nx-s1-5773354/legal-sports-betting-research-credit-bankruptcy https://www.npr.org/2026/04/04/nx-s1-5773354/legal-sports-be...
- sciencesama 6mo agokalashi is coming
- dredmorbius 6mo ago??? <https://www.wisdomlib.org/definition/kalashi https://www.wisdomlib.org/definition/kalashi> is best I can find, doesn't seem relevant.
- dgeiser13 5mo agohttps://kalshi.com/ https://kalshi.com/
- tibbydudeza 6mo agoThe old adage of bread and circuses ?.
- artursapek 6mo agoIt's so disgusting watching how much sports gambling and "prediction markets" have exploded in recent years
- estearum 6mo agoIMO prediction markets are an interesting tool but you can just ban sports gambling and keep 100% of their value and remove 90% of their downsides.
- wslh 6mo agoAre there markets where people can bet on bankruptcy rates too? Gambling increases bankruptcies, and then people gamble on the bankruptcies.
- mrbombastic 6mo agoRelevant snl skit: https://youtu.be/wXZNuwY_5-U https://youtu.be/wXZNuwY_5-U
- boringg 6mo agoDouble or nothing!
- silverlyra 6mo agoafter word spreads of easy pickings, funds swell into bankruptcy rate contracts. the success stabilizes average losses across Kalshi portfolios; the bankruptcy rate falls. after smart money then moves to predicting the period of the oscillations, …
- malux85 6mo agoI can see the potential link there, but my intuition says that the SKYROCKETING cost of living is probably more to blame.
- cybercatgurrl 6mo agoi think you mean the ever increasing greed of the 1%
- triage8004 6mo agoOne and the same until we off of a corrupted unbacked fiat based print on demand system
- malux85 6mo agoThey are the same thing
- astrange 6mo agoAn oil supply shock is not "ever increasing greed".
- pseudohadamard 6mo agoI think it saw that here, https://www.tylervigen.com/spurious-correlations https://www.tylervigen.com/spurious-correlations
- throwaway27448 6mo agoAre we the first state to openly care more about our rich than the people who live here?
- felipellrocha 6mo agoNot by far
- bensyverson 6mo agoNo, but historically speaking, the societies that operate this way tend to invite revolution
- mothballed 6mo agoBankruptcy won't even discharge the kind of debt many/most of the lower-middle class fall broke upon. Alimony, child support, student loans, "restitution."
- conductr 6mo agoBankruptcy at this point is just a way to signal to creditors not to lend more money to this individual. As you said alimony, child support, student loans, restitution are a must so the filing simply is a formal notice that "every penny this person ever earns is already earmarked, heed this warning before lending"
- mothballed 6mo agoIt's quite convenient though that it actually discharges the kind of debts rich people and businesses are more likely to accrue, while not discharging the kind of debts the middle/lower classes are likely to accrue when they're unable to pay them.
- conductr 6mo agoAgree. Also convenient that the warning I mentioned benefits those in the business of extending credit
- stevefan1999 6mo agoAnd no wonder why the job market is so booming right now because there are less companies alive and more people got laid off, thus shrinking demand and increasing supply in workforce recruiting. We all have to thank Trump and Anthropic/OpenAI/blah-blah-blah for this win-win situation. I hope there are jobs for company liquidators though it is usually the job of a junior solicitor/lawyer I reckon, as they will certainly have more demands amid this bankruptcy wave
- lgleason 6mo agoGot to love that golden age.
- cdrnsf 6mo agoThere's no reason to believe this will reverse or improve under the current administration. Grifting is celebrated and policy is decided by and for the wealthy. Meanwhile, tech leaders are promising even more job losses spurred by AI.
- htx80nerd 6mo agoFriendly reminder the US Gov printed ~4 trillion dollars during the Covid years.
- AirMax98 6mo agoI actually don't understand how this would affect bankruptcies — why?
- altcognito 6mo agoI don't know if this is his point, but a decent amount of cash went to individuals as part of Covid relief in different forms, and this caused a delay in bankruptcies because people were able to pay their bills. Pick your moral quandry.
- postalrat 6mo agoBusinesses focused more on seeking out easy government money than building good products.
- rglover 6mo agoSpeculation/personal read on this. 1. A lot of companies got used to ZIRP money (not to mention the trickle-down effect to the rest of the economy). 2. The COVID printing spree/helicopter money had a knock-on effect of rising inflation (more dollars/demand competing for the same resources, or less). That was made even worse by tariff fluctuations. 3. The delta between revenue/investment money vs. cost increases relative to inflation likely exceeded the threshold for these companies to stay solvent (or to make it worth it to keep the business operational).
- john_strinlai 6mo agofeel free to elaborate on the relationship you are drawing between that and the article
- altcognito 6mo agoWas higher prior to Covid, we are just reverting to the prior situation. https://www.debt.org/bankruptcy/statistics/ https://www.debt.org/bankruptcy/statistics/
- sheikhnbake 6mo agoIs this what they meant by a return to normalcy?
- ilamont 6mo agoI can't speak for bankruptcy filings, but I've sat through small claims sessions on a few occasions and probably half are for credit card debt. Most of the time the defendant doesn't show and assuming the bank wins, damages can be trebled in my state. And: Credit card rates are way, way up compared to just a few years ago. Earlier this year WSJ reported average APRs in the US were over 24% (https://www.wsj.com/finance/banking/the-credit-card-rate-cap-has-stalled-and-issuers-are-doing-just-fine-0694af05&ved=2ahUKEwjOjsaoqZGUAxU5NlkFHcANMTwQFnoECBkQAQ&usg=AOvVaw13P6GbBXbVNqYkp7iUiSA5 https://www.wsj.com/finance/banking/the-credit-card-rate-cap...). Most people do not read the fine print on their credit card applications, or compare them to what rates used to be like.
- Loughla 6mo agoWhat good would it do to compare rates to what they used to be?
- ilamont 6mo agoIf you've had credit cards in the past, your minimum payments and debt servicing will be a lot more expensive than before.
- egypturnash 6mo agoYour mom: Why don't you have a credit card? It helped me so much when I was in your situation. You, a young adult who doesn't check: I'll get one! runs up debt with an interest rate 4x what your mom had to deal with thirty years ago HELP I'M SUPER BROKE AND BANKRUPTCY IS A LOT HARDER THAN IT WAS THIRTY YEARS AGO TOO You, a young adult who checks: The interest rates are 4x what they were when I was in your situation. This looks like a much shittier deal than it was for you.
- simpaticoder 6mo agoThere needs to be a name for the way people think the world hasn't changed since they were a young adult. I'm not convinced it's just boomers; it's just that they had it so good the contrast is higher. Gen Xers do the same thing, I'm sure, for example assuming that kids ride their bikes to school and have textbooks and the leading cause of death isn't GSWs.
- emsign 6mo agoAI is sucking money out of other sectors. Unfortunately many of which a degrow means a decrease in living standards (unless you can afford the premium). I think they call it K shaped economy. It's bad right now.