I got the chart above from over at CalculatedRisk, its kind of a big wtf to me. Aparrently, personal bankruptcy filings were up a staggering 34.3% in July compared to last year while the S&P 500 rallied 7.4% last month. Obviously its not main street that is bidding up stocks, main street is loosing their job and filing for bankruptcy. It could be the shorts on wall street that were filing for bankruptcy but something tells me they are pretty far from bankrupt in this bear market. Its also interesting how the last time bankruptcy filings peaked was in late 2005, when the last stock market bubble was exploding to the upside. Now I'm not trying to go all fundamental or anything, I'm not short and if I was it wouldn't be because of this or any other economic statistic. It just makes me think to myself... what the fuck, what. the. fuck?
Wednesday, August 05, 2009
WTF: Bankruptcy Filings Soar With Stocks
I got the chart above from over at CalculatedRisk, its kind of a big wtf to me. Aparrently, personal bankruptcy filings were up a staggering 34.3% in July compared to last year while the S&P 500 rallied 7.4% last month. Obviously its not main street that is bidding up stocks, main street is loosing their job and filing for bankruptcy. It could be the shorts on wall street that were filing for bankruptcy but something tells me they are pretty far from bankrupt in this bear market. Its also interesting how the last time bankruptcy filings peaked was in late 2005, when the last stock market bubble was exploding to the upside. Now I'm not trying to go all fundamental or anything, I'm not short and if I was it wouldn't be because of this or any other economic statistic. It just makes me think to myself... what the fuck, what. the. fuck?
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5 comments:
Inflation rally! Here we go
Inflationary blow off top!!??!?!!!
On your mark, get set...
BLOW!!!!!!!!!!!!
Still a bear market rally imho.
Ever go deep-sea fishing and catch a small shark?
When the mate is too stupid to let it off the hook or put it out of its misery it will flop around the boat and eat everything in site. Then it will meet its maker.
I wonder if there is a similarity here or is it just lunch time?
~tooquiet.
Actually, it was late 2005 that bk's peaked and it was due to the change in bankruptcy laws that the Republican congress and bank lobby pushed through. Everyone ran for the exits to file bk before it became more difficult to do so. Ironically, 3 yrs later, banks have almost brought bankruptcy back to 2005 levels!
Thanks, you're right it was late 2005. I gotta learn how to read a bar chart. =) I knew there was some new legislation that came into effect that led to that severe drop but I didn't know that it also explained the peak. Thanks for the info.
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