2023-10-15 09:46:02
FTV News/Reported by Yang Simin and Guo Wenhai in Taipei
The U.S. Federal Reserve has started a cycle of raising interest rates, and the sequelae have emerged. According to statistics, as many as 516 companies have filed for bankruptcy since this year (2023), of which 17 have debts of more than US$1 billion. Some scholars believe that rising interest rates have increased corporate borrowing costs, causing companies with poor returns to be unable to withstand the pressure. The United States is facing the largest wave of bankruptcies in 13 years.
SmileDirectClub, the American dental braces giant that produces 3D printed invisible braces, recently filed for bankruptcy protection due to high debts. Since the beginning of this year, the number of bankruptcies in the United States has continued to rise. Among them, 17 have debts of more than US$1 billion, including Bedbathandbeyond, a home furnishings company that has been operating for 50 years, which has closed more than 300 branches across the United States, and Yellow, a century-old freight logistics company. It went bankrupt in August, and more than 30,000 employees suffered a fateful fate. The collapse of Silicon Valley Bank attracted global attention.
Qiu Dasheng, a researcher at the National Taiwan Institute of Economics: “It should be that its profitability and revenue are lower than expected now. In this part, it should be focused on manufacturing, because the entire terminal demand is very weak now.”
Fed to curb inflation!The United States has raised interest rates violently 11 times since last year and may face the largest wave of bankruptcies in 13 years
According to statistics, 62 companies went bankrupt in the United States in September alone, and as of the third quarter, the number had reached 516, making it the largest wave of bankruptcies in the United States in 13 years. Some scholars pointed out that in order to curb inflation, the Federal Reserve has violently raised interest rates 11 times since last year (2022). The benchmark interest rate has reached 5.25%~5.5%, a 22-year high, resulting in many high debts and low returns. For companies, borrowing costs rose and they were eventually crushed by financial pressure. On the other hand, American consumers are accustomed to using credit cards for consumption, and the borrowing interest rates are also high, so they will defer consumption.
Fed to curb inflation!The United States has raised interest rates violently 11 times since last year and may face the largest wave of bankruptcies in 13 years
Qiu Dasheng, a researcher at the Taiwan Academy of Economics: “The United States is the world’s largest market for end-use goods demand. As long as its market demand continues to be strong, the supply chain will have incentives to operate. But now, the end demand in the United States is weak. If Furthermore, if the unemployment rate soars, it will certainly become more severe.”
Expert analysis shows that the current unemployment rate in the United States is 3.8%, and the number of non-farm employment is also increasing. Although there has not yet been a job market depression, whether the Federal Reserve stays on hold in November or continues to raise interest rates may affect the U.S. and global economies. , Taiwan, which is mainly export-oriented, must respond early.
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