{"id":20039,"date":"2016-04-19T20:48:47","date_gmt":"2016-04-20T01:48:47","guid":{"rendered":"http:\/\/olduvai.ca\/?p=20039"},"modified":"2016-04-19T20:49:01","modified_gmt":"2016-04-20T01:49:01","slug":"corporations-are-defaulting-on-their-debts-like-its-2008-all-over-again","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=20039","title":{"rendered":"Corporations Are Defaulting On Their Debts Like It\u2019s 2008 All Over Again"},"content":{"rendered":"
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Corporations Are Defaulting On Their Debts Like It\u2019s 2008 All Over Again<\/a><\/h3>\n<\/div>\n
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\"Corporate<\/a>The Dow closed above 18,000 on Monday for the first time since July.\u00a0 Isn\u2019t that great news?\u00a0 I truly wish that it was.\u00a0 If the Dow actually reflected economic reality, I could stop writing about \u201ceconomic collapse\u201d and start blogging about cats or football.\u00a0 Unfortunately, the stock market and the economy are moving in two completely different directions right now.\u00a0 Even as stock prices soar, big corporations are defaulting on their debts at a level that we have not seen since the last financial crisis.\u00a0 In fact, this wave of debt defaults have become so dramatic\u00a0that even USA Today is reporting on it<\/a>\u2026<\/p>\n

Get ready to step over some landmines, investors.\u00a0The number of companies defaulting on their debt is hitting levels not seen since the financial crisis<\/strong>, and it\u2019s not just a problem for bondholders.<\/p>\n

So far this year,\u00a046\u00a0companies have defaulted on their debt<\/strong>, the highest level since 2009, according to\u00a0S&P Ratings Services.\u00a0Five companies defaulted this week<\/strong>, based on the latest data available from\u00a0S&P Ratings Services. That includes\u00a0New Jersey-based\u00a0specialty chemical company Vertellus Specialties and\u00a0Ohio-based\u00a0iron ore producer Cliffs Natural.\u00a0Of the world\u2019s defaults this year, 37\u00a0are of companies based in the U.S.<\/p>\n

Meanwhile, coal producer\u00a0Peabody Energy (BTU)<\/strong>\u00a0and surfwear seller\u00a0Pacific Sunwear (PSUN)<\/strong>\u00a0this week\u00a0filed plans for bankruptcy protection. Shares of Peabody have dropped 97% over the past year to $2 a share and Pacific Sunwear stock is off\u00a098% to 4 cents a share.<\/p><\/blockquote>\n

A lot of big companies in this country have fallen on hard times, and it looks like bankruptcy attorneys are going to be absolutely swamped with work for the foreseeable future.<\/p>\n

So why are stock prices soaring right now?\u00a0 After all, it doesn\u2019t seem to make any sense whatsoever.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Corporations Are Defaulting On Their Debts Like It\u2019s 2008 All Over Again The Dow closed above 18,000 on Monday for the first time since July.\u00a0 Isn\u2019t that great news?\u00a0 I truly wish that it was.\u00a0 If the Dow actually reflected economic reality, I could stop writing about \u201ceconomic collapse\u201d and start blogging about cats or […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1361,13536,195,6847,13189,3461,200,13537,2606,13538,5983,312,4901,5221,7118,7554,7034,11616],"class_list":["post-20039","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bankruptcy","tag-bankruptcy-attorneys","tag-debt","tag-debt-default","tag-debt-defaults","tag-debts","tag-default","tag-defaulting-on-debt","tag-defaults","tag-economic-reality","tag-economiccollapseblog","tag-financial-crisis","tag-michael-snyder","tag-stock-prices","tag-stock-trading","tag-the-dow","tag-the-economy","tag-the-stock-market"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20039","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20039"}],"version-history":[{"count":2,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20039\/revisions"}],"predecessor-version":[{"id":20041,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/20039\/revisions\/20041"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20039"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20039"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20039"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}