US Says Bankruptcies Reach Nearly 5-Year High

[uzforce]

Looks like things are continuing to get worse. I think these figures are nothing compared to what they will be in a few more months when the majority of unemployed people exhaust their on unemployment benefits. You can read the article here:

http://www.cnbc.com/id/38744090

[researchnerd]

No big surprise there. I agree, when the majority of the 99ers feel the full impact of losing their unemployment benefits, it's going to go even higher.

[whathehell]

and by the looks of the office of all the attorneys I saw this week, it will just keep on rising... People waiting to talk to lawyers for hours...

[wnguyen]

researchnerd

what's the 99ers? Are they the ones running out of unemployment benefits?

[shauner]

yes that's exactly what the 99ers are. They have collected the maximum 99 weeks of unemployment benefits.

I can only see the bankruptcy numbers going higher into 2011 and 2012.

researchnerd

what's the 99ers? Are they the ones running out of unemployment benefits?

[ccsjoe]

I think BK numbers will certainly increase through 2011. Hoping that economy stabilization will happen during 2011, employment/hiring usually trails curve by approx. 6 months, so hopefully end of 2011/2012 will start seeing a slow turnaround in employment and thus BK's. Then again, I just speculate. I also believe there will be a double dip recession to happen at 1st Q 2011.

[MSbklawyer]

Then again, I just speculate. I also believe there will be a double dip recession to happen at 1st Q 2011.

That's about all anybody does with regard to economic predictions -- speculate. So your speculation is as good as anybody else's.

But to have a "double dip" recession, we have to first rise out of the first dip -- or at least level off, and then go down again. I haven't seen anything indicating that we've had that rise or leveling off yet.

Here's a good article on what it would look like:

http://finance.yahoo.com/career-work/article/110344/what-the-double-dip-recession-will-look-like

[ccsjoe]

[QUOTE=MSbklawyer;441874]
But to have a "double dip" recession, we have to first rise out of the first dip -- or at least level off, and then go down again. I haven't seen anything indicating that we've had that rise or leveling off yet.

Depending on which indicators you choose to look at, there is some argument that can be made for a stabilization and even slight recovery. We're definitely off the lows of 2008 from a market standpoint, and certainly the pace of negative job creation has slowed considerably, some would say has gone positive although not enough to create enough jobs so as to have a substantial impact. So, in my mind at least, there has been a stabilization and we're not in the freefall of 08/09....meaning if another one happened now, I'd label it a double dip.

Good article by the way.

[Flamingo]

What is scarey to me is that someone has to pay for your bankruptcy, the bankruptcy we filed and everyone elses' and more that are coming. Someone has to pay for all that dumped debt and it is all of us with rising prices, higher fees, cut hours, job losses Just over this past week we received two notices of rising bills effective 10/1 - our monthly trash bill going up to cover their rising costs and our internet/cable bill going up $10 per month due to increased costs. Part of the rising costs are people not paying their bills. So everyone else pays.

[MSbklawyer]

What is scarey to me is that someone has to pay for your bankruptcy, the bankruptcy we filed and everyone elses' and more that are coming. Someone has to pay for all that dumped debt and it is all of us with rising prices, higher fees, cut hours, job losses Just over this past week we received two notices of rising bills effective 10/1 - our monthly trash bill going up to cover their rising costs and our internet/cable bill going up $10 per month due to increased costs. Part of the rising costs are people not paying their bills. So everyone else pays.

Stated another way: For every dollar a person consumes that he didn't produce; the corolary is that there is a dollar that someone else did produce that he won't get to consume.

Hey . . wait .. Did I just agree with Flamingo on someting?

[ironpirate]

I'm doing my part

[wnguyen]

What is scarey to me is that someone has to pay for your bankruptcy, the bankruptcy we filed and everyone elses' and more that are coming. Someone has to pay for all that dumped debt and it is all of us with rising prices, higher fees, cut hours, job losses.

I think it's the cost of credit. Even though it's not exactly put, it makes sense. The credit card companies charge us on unsecured debts double digit interest rates to partly cover this risk, which is bankruptcy, as well as those default. For the past several years I and million others have been paying for the defaulted and bankrupt, now it's my turn and many of yours here too. The cycle/circle keeps going.

[wnguyen]

yes that's exactly what the 99ers are. They have collected the maximum 99 weeks of unemployment benefits.

Thanks shauner.