Soon, bankruptcy filings will hit record levels in Minnesota. I know it does not look like that can be the case right now, but it will be and sooner than you think. How can I be so confident of that? Easy, Google global debt and you will get part of the picture. But that is only part of the picture. Global debt levels never went away even after the last recession, which started in 2007/2008. We are at a crossroads in our economy that has fundamentally transformed itself without anyone noticing much.
What am I talking about? There are five major issues affecting America’s economy. First, baby boomers are beginning to retire in droves. Boomer retirement is ominous for the economy. Why? Retired people consume less than they did when they are working. That spells disaster for an economy who relies heavily on consumption.
Second, Google global debt levels. Global debt is highest in world history. We had not rid our self of the debt from the last recession before the next one will hit with a thunderbolt.
Third, Covid is not dead. Fourth, American government is broke. Fifth, all the stimulus pumped into the American economy has done nothing but ballooned an already ballooned stock market only to set it up for one of the biggest crashes the world has ever seen.
Along with the stock market crash, the housing bubble will burst as well. Purchasing a home for 500k will soon mean you are living in a home worth 300k that you owe 500k on. The squeeze on American employers will be epic. The number of lay-offs will be huge and many of these jobs will never come back. How many Amazon packages come to your house? Do you think this trend is going away? Americans more and more are ordering everything from food to shoes on line.
If you think the Walmart’s of the world gutted small town America, and they did, just wait until you see what on-line shopping does to our cities. Do you need a 300-seat restaurant when 50 people come out to eat and the rest order on-line?
Do you need huge mega-malls when the actual shopping done is going down? Who needs high-rise office buildings when working from home or virtual office space is on the rise? Commercial buildings are going to become a thing of the past and in their place will be much smaller more compact, more product/service centered businesses.
Soon, you will see the convergence of these forces come together to spell doom and gloom for the American economy, the world economy really. The result in Minnesota will be an inevitable surge in chapter 7 or chapter 13 bankruptcy filings.
CALL NOW FOR A FREE STRATEGY SESSION FROM A MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM
When the time is right, or when the time is ready, reach out to Minnesota’s go-to bankruptcy law firm by going now to www.lifebacklaw.com. You will be so thankful you did.
