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Consumer Bankruptcy Filings Hit Highest Monthly Total In 4 Years
The facts as reported by the American Bankruptcy Institute: consumer bankruptcy filings reached 126,434 in July, a 34.3% increase year over year, and a 8.7% increase sequentially (116,365 in June). July's number is the highest monthly bankruptcy total since the October 2005 bankruptcy reform aka the Bankruptcy Abuse Prevention and Consumer Protection Act.
"Today's bankruptcy filing number reflects the sustained and growing financial stress on U.S. households," said ABI Executive Director Samuel J. Gerdano. "Rising unemployment on top of high pre-existing debt burdens is a formula for higher bankruptcies through the end of this year."
In short, the main driver of US GDP, the consumer, has yet to experience any of the fringe benefits that have driven the S&P up by 50% in the last 4 months. Un-recasted unemployment numbers are in line with an almost straight line decline (still) while consumer bankruptcies continue accelerating. But why should this matter - the US is now at a point where inventory pick up and continued government flows into the economy will singlehandedly propell America as the spearhead of efficient capitalism well into the 22nd century. The only question is whether historians will use a "quadr" or "quint" prefix to the -illion they describe U.S. indebtedness on December 31, 2099.
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Now that is a green shoot for sure, I mean look what Bankruptcy did for GM and Chrysler, it can only get better from here... Long on GS!!!! Oh... wait....
green chuts
I am going to be bankrupt soon from shorting this market..looks like thats why the numbers are going up so much. Soon everybody with a logical sense of reality will be filing for BK.
short China; thats what im doing.
how ya doin dat
think about shorting brazil too
Some REIT 10-Q investigation from BusinessWeek of all places
"The big concern with Vornado, as disclosed in its 10-Q regulatory filing, is a growing imbalance between aggregate earnings and dividend distributions paid. At June 30, earnings were running a deficit to distributions paid of $1.29 billion, up from $527.2 million in the prior year, which suggests that the current quarterly dividend payment of 95% a share to stockholders is unsustainable going forward. To preserve cash (about $390 million annually), shareholders are being asked to make an election to receive this dividend in a combination of 40% cash and 60% Vornado common stock. A Vornado spokesperson said the company does not comment on forward trends."
http://finance.yahoo.com/news/The-10Q-Detective-Vornado-bizwk-681358720....
This isn't a dividend, this is looting. This shows you where the next conspiracy is coming from. Combine this with the emerging CRE bailout and what do you get:
FASCIST CORPORATISM!
All the major CRE REITs have been pushing for stock dividends in lieu of cash now. The sad thing is, shareholders are falling for it and taking the stock (up to 90% stock, in some cases).
Nowhere in the text of the dividend options does it state "in order to continue our current Ponzi operations..."
Yeah, REITS being able to finance their debt does not mean the equity has any value. Heck, Madoff could finance his debt for 30 years....
Anyone have any idea what is going on with the volume today? Futures is deader than a doornail but the cash market has already traded over 1.1 billion shares on the NYSE.
yea, I noticed this. No idea what the deal is.
Check the volume in citi, fnm, fre, aig & bac. ever since the Citi swap its been trading well north of a billion shares, single-handedly bringing up the average volume of stocks in the SP500 by almost 650mln shares a day!!!
ahh yes, seeing a light at the end of the tunnel now! (accompanied by A LOT of noise...)
-Wiley E. Coyote
"There s a light at the end of the tunnel and I hope it's not a train!" - Garth Brooks
All of these problems that Mr. Durden speaks of can be remedied by lowering our taxes and deregulating business. In laymen's terms, if companies paid less taxes and had less restrictions, they could hire more people and less people would need to file for bankruptcy. See, it's not that difficult to understand!
Don't you people understand that supply-side or "trickle down" economics works? It has proven itself time and time again. In addition, lowering taxes on capital gains will allow people to reinvest in this time of a bull market. The benefits of that would far outweigh any stimulus package that Obama can cook up in his kitchen.
Finally, I want to say that most of these people whom are filing for bankruptcy are taking the easy way out. I bet 90% of these people are Democrats whom voted for Obama. The government solution is the answer to everything for these people.
Now I know people are unemployed and they are scared. I feel for them. I am currently very concerned that I may be laid off from UBS. If it does happen, I will suck it up, and sell one of my homes if I have to. It will be very difficult, but it's what we all must do in hard times.
--Phil
Phil it doesn't matter what folks political affiliation is.
What does matter is they are filing bankruptcy, lost money never to be seen again and on the other side of the bankruptcy is a screwing of someone holding the bag.
Oh, and I feel for all the laid off bankers so much...
"I will sell one of my homes" how many the f*** you got ?
These people are losing the only roof over their head and you have the audacity to post about "selling one of my homes" ! POFS ! We can never get enough laid off bankers, can we ? Parasites...
hey, how's that hook in the corner of your mouth feel after taking that bait, buddy?
phil...you have got it down; great schtick. as i have asked before, did your good friend JM share some of that alaskan pelt or did lindsey keep it all?
Actually, more BKs is roughly what we need here in the US. So, of all the crap I've read about recovery, I do know that we need a lot more BKs, in order to essentially flush the system.
but they will all get bailed out so it just BK's the future - heck i just got a home and i am thinking of getting another loan and then find a way to ditch $10,000 of credit card debt... who needs unsecured credit once you already have 2 cars and a home?
even if they come after me i can get away with pennies on the dollar
I know there were a lot complaints at the time that the Bankruptcy Abuse Prevention and Consumer Protection Act was another case of the Republicans protecting their friends in business (which could very well be the case). What I'm wondering is why congress hasn't repealed this act?
GS STK TANKING PAST 2 DAYS, LEADING INDICATOR FOR FINANCIALS & MKT AS A WHOLE!! SHORT THE HELL OUT OF IT, THE MOMENT HAS ARRIVED!!!
GS STK TANKING PAST 2 DAYS, LEADING INDICATOR FOR FINANCIALS & MKT AS A WHOLE!! SHORT THE HELL OUT OF IT, THE MOMENT HAS ARRIVED!!!
BK's are up? YoY and MoM? Well I for one have never heard of so many things being up at once! I guess we are in a recovery.
PS. What does BK stand for? I know it has to do with the economy and stuff - I'm just having a brain fart.
BK in this context is 'bankruptcy' but I prefer Burger King
Any chance Tyler or other members have a chart tracking the history of consumer bankruptcies and wouldn't mind throwing it up here? Any time horizon would do, but naturally the more history available, the better. Would be interesting to compare this chart to the recent quarterly uptick in prime mtge delinquencies and foreclosures over the same time horizon. Would provide a clear representation of the increasing deterioration of US consumer balance sheets despite the increasing appetite for risk assets among investors.
http://www.federalreserve.gov/boarddocs/rptcongress/bankruptcy/gifjpg/ch...
http://www.federalreserve.gov/boarddocs/rptcongress/bankruptcy/gifjpg/chart6_400px.jpg
http://jan.freedomblogging.com/files/2009/03/bankruptcy-chart.gif
http://www.creditslips.org/.a/6a00d8341cf9b753ef011570bd174f970b-500wi
31657...keep in mind that bk's are skewed from the change in 05...essentially, that law change made it tougher for consumers to go bk.
Just wait till Uncle Sam files one.
Hmmm...most worrisome here is that the BK prevention and abuse act was supposed to make it *harder* to go BK. And yet here we are.
Wrong. It was not meant to "make it harder to go BK" in general. Only make it harder to go BK under the chapter that gets your debt mostly wiped out. So now you go BK and still owe your debt(or a substantial portion thereof). Not sure if the previous civil war was about slavery, but next one might very well be...
after the dot bomb era, many many people like me filed for the clean chapter 7 mulligan that it was back then.. now we are all in better positions and will look to slam the system again.
its the game of unsecured debt. you wouldn't even loan a few hundred to your friends without collateral so what should banks expect?
the sheep do not have to play nice.. no one else does
Uncle Sam filing for BK will bring out the "Tyler Durden" in all of us?
This certainly justifies the preliminary 1.333 million seasonal adjustment in the July Employment report.
don't worry, be happy
We are happy. The happiest crowd around. Sitting in TD's restorant at the end of the universe and discussing the end of it. Cheers mates !
The big concern with Vornado, as disclosed in its 10-Q regulatory filing, is a growing imbalance between aggregate earnings and dividend distributions paid. At June 30, earnings were running a deficit to distributions paid of $1.29 billion, up from $527.2 million in the prior year, which suggests that the current quarterly dividend payment.
recommended: my newest bookmarked finance site: http://www...
Regarding the bankruptcies - like we didn't know that this was going to ramp-up...there's no way it wouldn't.
The big question is whether this was "better than expected" or "not as bad as we thought"...haha
Equifax wants their own headline story TD:
08-10 14:18: Small business bankruptcy filings up 81% in June, according to Equifax data
BK filings are a lagging indicator. On average it can take several months to put a petition together before filing. What you're now seeing was likely set in motion during the early and late spring.
No it's not. You can go see a lawyer and have the papers drawn and filed within a week! You can download all the documents from the .gov site, fill them out yourself and file the same day!
Just further evidence that although many people got caught up in the insane debt mania of the noughties, if you were an actual instigator you get a bail out and only have to keep your bonus flat for a year before rocketing it back up to record levels, whereas if you were simply a normal person who thought that the highly paid people in the banks knew what they were doing and took their "expert" advice you lose everything.
I'm glad I'm not the only one who sees this as a corporate kleptocracy with the democratic system merely a sham for the people to choose between a limited pool of candidates provided by the corporate overlords.
The sad thing is the Founding Fathers foresaw this day and explicitly shackled corporations so they couldn't acquire more power than a citizen. It took approximately 200 years for the system to be broken, but democracy in America is over, the nation conceived in liberty and dedicated to the proposition that all men are created equal has reverted to a neo-feudalist state.
My advice to all, learn the history of feudal court politics and pick a Lord to toady up to, because government of the people, by the people, for the people has perished in the United States of America.
Reagan predicted that Big Government would lead us to Obama style totalitarianism. Well, here you go America. You didnt listen. Now eat it. How does this communism taste? You wont even have toilet paper in a few months. dont mess with the Free Market. You will get slapped with the pimp hand everytime.
At some point the trend has to reverse. So every uptick is still a green shoot cause it is a data point closer to reversing.