Hello fellow Rebel capitals, hope you're well. So I wanted to go over a recent story that we just saw

with some data about corporate bankruptcies that are really or could dwarf what we saw during the GFC in 2008.

That's kind of the trajectory that we're seeing with the data.

Let's go right over to this story from market

business insider excuse me dot com

headline US corporate debt defaults surge a hundred and seventy six percent you heard that right 176%.

You heard that right.

U.S. corporate debt defaults have surged 176%

as the feds won inflation pushes more companies into financial distress.

I don't necessarily, they're implying that it's higher interest rates. I don't know if it's just that. I think there's a lot more to it.

Key talking points, debt defaults in U.S. companies surge 176 points

in the first eight months of 2023,

compared to a year earlier, same period.

And this is from S&P data.

Higher interest rates push more businesses into financial distress.

Yeah, I think that's part of it, but again, I think there's a lot more to it than that.

And look, this is what the yield curve has been warning us for the last 12 months. It should come as no surprise. As many as 69 firms missed debt payments during the January August stretch up from 25 in the same period

2022 the media entertainment business most affected with sixfold jump

and defaults so it's pretty much summarizing what they said in the key talking points at the beginning of this article, but then we go into kind of the meat here.

And what I highlighted, more and more Americans are struggling to meet their debt obligations

so it's not just corporations it's it's the average Joe and Jane as well after the

Fed boosted benchmark borrowing costs by more than 500 basis points over the past six quarters of tame inflation.

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