"Will This Be America's Next Big Bankruptcy?"
By Mike Palmer
"The ultra-wealthy entrepreneur Bill Bonner wrote a fascinating piece in his daily e-letter last week. Bonner, who built one of the largest financial research firms in the world, with offices across the globe starting in the late 1970’s says three trends made the period of 1980 to 2022 one of the most investment-friendly episodes in history. Bonner describes these three investor-friendly trends as:
Cheap energy...
Cheap labor (mostly from China)...
And cheap credit, in the form of ultra-low interest rate loans.
But now... says Bonner, all three of these trends have radically reversed. And as a result, businesses, ideas, and plans based on these trends are quickly collapsing... and even going bankrupt!
You can see the wreckage beginning to pile up all around us...The cryptocurrency company FTX, for example, which at one point was worth $32 billion and counted Blackrock and the Ontario Teachers Pension Plan as shareholders, recently went bust. The millions in losses from this collapse are just beginning to be tallied.
Before that, nearly half of England's 400 pension funds almost collapsed. They were saved only by the intervention of the country's central bank. Then, there are the formerly "hot" tech businesses like Carvana, a company that was being touted as a way to reinvent the car business. It's fallen 98% in roughly a year... and is on the verge of bankruptcy.
Many more former tech darlings, like Arrival (electric cars), Vapotherm (healthcare), and Porch (home buying and selling) are also all down more than 95% in the past year. But here's the really scary part...
According to Bill Bonner, these collapses and bankruptcies are just getting started. In fact, Bonner says the next big bankruptcy and next big collapse is likely to come from a place few people are even thinking about right now. Bonner says this looming fall is going to catch almost everyone by surprise and could lead to some very difficult years in America.
I strongly encourage you to check out Bonner's recent analysis. You're unlikely to hear this message anywhere else, and the mainstream press likely won't report on it for months to come, when it's far too late. Click here to view it for free..."
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