More signs of the US economy on the skids with the latest data showing that bankruptcy filings are climbing and are likely to reach one million by the end of December.
According to the figures, more than 5000 businesses went bust each day in November. The November daily filing rate of 5,075 is up 36.9% over the same time period the year before and we are now only a few hundred bankruptcies short of one million.
No relief is in sight, with Bain & Co warning that bankruptcies will continue into 2010.
But what makes it worse now is the prospect of General Motors or Chrysler going bust. That would set off a cascade of failures further down the food chain with many suppliers going out of business. Which is why the US Government is now considering using money from the $700 billion bank bail-out.
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