will 2010 be another big year of filing bankruptcy?

[Scream2Death]

2009 was a big year, just wondering wat you guys dink

[frogger]

It's going to be huge for bk filings in 2010.........

[Faust]

I agree, I think it will be a big year.

[BrokeIn2010]

Despite reports to the contrary, the recession isn't over; some would argue that we're just seeing a breather, that we've still have a couple more bottoms to hit before we really start a sustainable recovery. 2010 could end up being bigger as people's savings, "rainy day funds", and unemployment continue to run dry with nothing on the horizon to refill those coffers.

[DeadManCrawling]

Former Fed Chair Alan Greenspan was quoted today saying:

The current economic emergency is worse than any other in history. Including the Great Depression.

I think he is correct. He also noted that the so-called "recovery" is only a recovery for the very wealthy and the largest corporations. And even on that score, the largest corps have largely seen improved numbers because of massive layoffs, paring down the workforce to numbers that cannot be sustained for a long period.

It is all an illusion, in other words, unless you were in the ultra-wealthy category to begin with.

For those of us living it, I think this has been obvious for some time.

But the stock market is doing very well, you say? Not really.

I read a keen analysis of this by a former CEO of JP Morgan. He suggests that the stock market gains of the last year are not driven by anything resembling a healthy market. It makes sense.

The largest banks and corporations to get bailout funds received somewhere in the range of a few trillion dollars. Then they held onto it, and did not lend it out, as was supposed to occur. They are in the business of making money, and also did not want to hold it in cash.

So they invested in the stock market. He guesses that the TBTF banks are playing, essentially, a few rounds of poker at the NYSE with taxpayer money that was intended to be loaned out. And the numbers he cites seem to verify.

Also, the government has now purchased over 97% of ALL mortgages in the last 2 years. That is an astounding number. They are supposedly about to end this type of purchasing. Who will buy them now? I wouldn't after seeing the massacre in the last few years in terms of real estate. And who else would lend on what is probably a declining asset from the start?

All in all, I think we are now nearing the edge of the cliff, but most people seem to believe (or hope) that the real cliff occurred in 2008. I think we are in for one heck of a year.

[DebtHater]

Despite reports to the contrary, the recession isn't over; some would argue that we're just seeing a breather, that we've still have a couple more bottoms to hit before we really start a sustainable recovery.

I'm going to agree with you here. My job's parent company's president just announced today that there will be some 1,000 cuts company wide to balance the current budget as the revenue from state taxes is not as much as originally projected.

I guess that's what you get with incompetent state government.

[chriselle]

in illinois as of today, there are 7107 filings already.

[flyinbroke]

My company just cut another 600, to add to the 2200 cut last year. We are not done by a longshot.

[OhioFiler]

As the real estate market continues to tank I think we'll see more and more strategic bankruptcies designed to relieve owners of upside down properties.

[BrokeIn2010]

Uggh...well welcome to the Crash all over again:

Listening to local talk radio this morning and they had some dull and boring financial expert own-- you the type, he could put you to sleep just saying his name. Well in all his droning on about 401k and maybe/maybe not they're a good idea, he mentioned a new "securities" market that's coming up: junk-debt securities. Basically, Banks/Credit Card companies do what they did originally, except using debts that are in litigation or collection to value the security then sell that Junk-Debt security as a "investment grade security".

Yeah, let's do this with out 401ks and investment, cause we all know that those securities are sound and are going to turn a profit and not implode under a slam of BK filings.

[momisery]

I have to agree with the negative here... it will be worse. A lot of people are just holding on by their fingertips and as unemployment benefits run out, and savings they will have to file. Many Americas are a hair away from disaster anyhow now days. The second huge reason would be the banks have simply not foreclosed on all the homes yet, and they will have to start doing that in 2010 as their profit lines are back up. The great news is our stimulis helped China, her economy is back on track and thanks to her own stimulis she is growing by leaps and bounds again. Of course those sort of bail outs work in a country that has its own manufacturing, but not here in the USA because the money spent by us goes to aid china. So, thanks so much to Regan for his amnesty plan for illegals and the laws with no teeth in them to stop it from happening again, thanks to the Clintons, the Bushs for NAFTA and to Bush and Obama for the bail outs for the rich... nice to know you all agree and get along so well... we are all busy fighting over partylines out here.. right or left while you all in Washington toss gas on our fire, and then go out to play golf together in complete agreement on everything.. but pretending in front of the cameras to have a two party system that doesn't get along.. right. we believe you.. bunch of crooks.

[flyinbroke]

Yep. ABC news pointed out last night that the bailed out banks gave out billions in bonuses again, but they are not lending at all. Business as usual.

Another reason China's stimulus worked is, if I am not mistaken, that the money was given to the people and not the banks. Their reasoning: people don't spend when they have no money. Give people money. Spending begins again.

We bollocks'ed up that idea.

[BrokeIn2010]

Here's what I don't understand:

Given the billions (trillions?) pissed into the TARP bucket, couldn't the Fed, Congress, whoever, just declared a debt amnesty for all unsecured debt? Basically said: Okay, for Bank "X" to get any TARP funds they have to declare all unsecured debts null and void. Frees up money for people to spend where they need it, it's the same effect as a BK-- in terms of the companies still getting nothing.

[flyinbroke]

There are probably a million ways they could have stimulated growth. The pols, however, are all in bed with the AIGs, BoAs and so on.... They are looking out for their interests and to hell with everyone else.

The news about the bonuses mentioned that defaults and chargeoffs are hitting record highs in the CC world (and experts don't think we are done yet), people are spending less and using much less credit as well as paying down debt.

[frogger]

Given the billions (trillions?) pissed into the TARP bucket, couldn't the Fed, Congress, whoever, just declared a debt amnesty for all unsecured debt?

Why on earth would they do that when they can buy votes with the money instead?

Congress and baby diapers should both be changed often, and for the same reason.