Bob Nardelli, the former CEO of Home Depot, is warning about more bankruptcies. He said a lot of corporations in the United States could be close to filing for bankruptcy and the economy won’t be able to handle it.
Nardelli blames lawmakers for their delay in coming to terms regarding the country’s debt ceiling. He says it’s all the fault of Congress’ inability to work together to raise the U.S. debt limit. That inaction is creating a burden on businesses, saying that he is “definitely worried” about the situation, according to a report by The Epoch Times.
“I think we’re in a very complex environment. And, of course, this debt issue only adds to that. It adds to the certainty of uncertainty, what’s going to happen,” Nardelli said
“I think we’re going to see a lot of bankruptcies. Like Bed, Bath, and Beyond. We got Walmart not only laying people off but closing stores. We got Accenture laying people off. We got Amazon closing distribution centers. So, I think there’s a tremendous-mixed message,” Nardelli said in an April 14 interview with Fox Business.
At present, the “complexity” of the American economy is “different than anything I have seen in my 52 years,” he continued.
Bankruptcy filings across the United States rose for the third straight month in March in all major industries. A total of 42,368 new bankruptcies were filed last month, according to data from Epiq Bankruptcy, a provider of U.S. bankruptcy court data, technology, and services.
This is 17 percent up from the 36,068 filings in March 2022 and is the highest number of monthly bankruptcy filings since April 2021. –The Epoch Times
Lending activity by banks also suffered the biggest plunge ever in the two weeks ending March 29th. Commercial lending in the country declined by $105 billion during this period—the highest since 1973. The collapse in lending was led by declining real estate loans as well as industrial and commercial loans.
According to financial analyst Andreas Steno Larsen, the U.S. economy is going to face some pretty hard times in the coming months. “Evidence is gathering that the SVB-fueled banking stress indeed will turn into a recession, but instead of a fast and rapid liquidity-driven recession, we are rather slow-walking into a credit crunch over summer,” he wrote in an April 9 post.
Job cuts and inflation are also playing roles in the systematic and controlled demolition of the U.S. economy.