Retail Bankruptcies Soar – Another Bubble Bursts

by | Jan 11, 2009 | Headline News

I’m sure many of us saw this coming last year, some saw it even before that. Struggling retailers across the country have already closed, are preparing to close their doors or are at a significant risk of defaulting on loans. Some of the more recent retailers in the news:

  • Circuit City (120+ Stores)
  • Goody’s Family Clothing, Inc. (287 stores)
  • Against All Odds USA (64 Stores)
  • Macy’s
  • Linens ‘N Things (Vaporized 2008)

In addition, job losses continue to mount.

If major retailers are closing and small business is tightening its belt, where will the former employees of these firms go?

Answer: nowhere.

This is a negative feedback loop. As more people get laid off, even less people can afford to spend, thus causing further deterioration in the retail sector. Every time a retailer goes bankrupt and closes stores hundreds more are laid off.

Next, we should begin to see the implosion of the commercial real estate bubble. Management companies of Shopping malls, Shopping Centers and Strip Malls will begun to default on loans. They’ve held their ground thus far, but there have already been some default scares.

One thing is reasonably certain given our current econmic conditions: retailers are refusing to open new stores. As existing retailers close their doors, and no new retailers come in to replace them, it becomes much more difficult for malls to meet their loan obligations.

As if the sub-prime loans didn’t cause enough destruction, banks will now have to deal with a massive, nationwide collapse of commercial real estate.

The Super Bubble is still bursting.

Inflation is Running at 40-Year Highs!

Negative interest rates are taxing savers, creating food shortages, and making life miserable in the United States!

There's little time left before the REAL DISASTER occurs!

Download the Ultimate Reset Guide Now!

    Related Articles

    Comments

    0 Comments

    Commenting Policy:

    Some comments on this web site are automatically moderated through our Spam protection systems. Please be patient if your comment isn’t immediately available. We’re not trying to censor you, the system just wants to make sure you’re not a robot posting random spam.

    This website thrives because of its community. While we support lively debates and understand that people get excited, frustrated or angry at times, we ask that the conversation remain civil. Racism, to include any religious affiliation, will not be tolerated on this site, including the disparagement of people in the comments section.