Bankruptcies
in sentence
104 examples of Bankruptcies in a sentence
But if regulations block Greek firms from laying off workers, and if militant Greek unions refuse any changes in working conditions, the result could be a wave of
bankruptcies
and a surge in unemployment.
In that case,
bankruptcies
and fear of bankruptcy spawn an epidemic of further bankruptcies, reinforcing fear.
Trump’s campaign is premised on his reputation as a fabulously successful businessman, though it’s not clear just how successful he’s been; there have been four bankruptcies, and some of the businesses based on his brand have failed.
But, beyond that, Europe’s experience ought to spur a full rethink of the global system for administering sovereign
bankruptcies.
Recently, Germany reacted to a proposal to forgive a portion of Greece’s debt by maintaining that the treaty provision that proscribes bailouts also rules out state
bankruptcies
and debt forgiveness.
Similarly, there is an urgent need for more affordable and flexible lending to small businesses before a fresh wave of
bankruptcies
crashes down on the economy.
Institutions hit by a cross-border string of contagious
bankruptcies
are thus likely to add further deflationary pressure to the global economy.
After all, for every day that lawmakers delay, there will be even less hiring, more layoffs, and greater risk of corporate bankruptcies, especially among the growing number of companies whose financial resilience is eroding as they face tighter lending conditions and their cash burns continue.
Making matters worse, his closest advisers apparently regard high unemployment and waves of small-business
bankruptcies
as salutary developments that will strengthen American’s work ethic in the long run.
To prevent bankruptcies, they are extending liquidity lifelines to private businesses in the form of massive credit guarantees and the deferral of tax payments (many of which will never be collected).
The inability of households and firms to make rent, service loans, meet payroll, and pay taxes triggered a cascade of business closures, job losses, furloughs, bankruptcies, and ballooning fiscal deficits.
Before long, the United States could face a trifecta of millions of insolvent consumers, thousands of small-business failures, and many
bankruptcies
of large public firms, with whole industries going broke at the same time.
If
bankruptcies
surge as they did following the 2008-10 financial crisis, then, based on how long it takes to handle each case, we calculate that a US bankruptcy judge would have to work close to 50 hours per week to keep up with the increased caseload.
Government support under the Coronavirus Aid, Relief, and Economic Security (CARES) Act will prevent some immediate
bankruptcies.
Bankruptcies
surged during the 2008-10 crisis, too, despite substantial government economic aid.
If
bankruptcies
peak more quickly this time, there is no time to lose.
The accelerating pandemic is also exacting a shocking human and economic toll, first and foremost in terms of lost lives, but also as a result of bankruptcies, job losses, and mental-health problems.
Macroeconomics tells us that spending will fall, owing to households’ and firms’ weakened balance sheets, a rash of
bankruptcies
that will destroy organizational and informational capital, and strong precautionary behavior induced by uncertainty about the course of the pandemic and the policy responses to it.
At the same time, policies to protect the most needy, provide liquidity to prevent unnecessary bankruptcies, and maintain links between workers and their firms are essential to ensuring a quick restart when the time comes.
Worse, the loss of income for many households and firms means that private-sector debt levels will become unsustainable, too, potentially leading to mass defaults and
bankruptcies.
In a mild scenario, this can cause a slowdown in domestic lending, investment, and growth; in extreme cases, it can cause defaults, bankruptcies, and a financial crisis.
In a situation of generalized stress, only governments (with the help of central banks) can protect citizens, prevent bankruptcies, and limit social fragmentation.
If widespread
bankruptcies
are not prevented, then the pandemic’s next victim could be the banking system.
In those two previous episodes, stock markets collapsed by 50% or more, credit markets froze up, massive
bankruptcies
followed, unemployment rates soared above 10%, and GDP contracted at an annualized rate of 10% or more.
In the US and the United Kingdom, governments are planning large fiscal packages to expand health-care provision, protect payrolls, provide additional unemployment insurance, delay tax payments, avert unnecessary bankruptcies, shore up the financial system, and help firms and households survive the storm.
Rather than bailing out the entire airline industry to prevent bankruptcies, consolidation, or long-term shrinkage, government policies should aim to reduce emissions from airplanes to a comparable extent as automobiles.
Firms have remained largely solvent, and jobs and wages have been protected, with fewer corporate
bankruptcies
in the first half of 2020 than in the previous five years.
But this might be wishful thinking: Historically, there is a lag between declining GDP growth and rising
bankruptcies
and unemployment, which tend to peak a year after the initial shock and remain high for another two years.
The Bank for International Settlements estimates that
bankruptcies
among advanced-economy firms could rise by more than 20% (from the 2019 baseline) next year.
Major corporate
bankruptcies
will likely come next.
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