Nov
10
Prepare for a new wave of bankruptcies over the next six to 18 months, experts are predicting.
There are a number of triggers that could set off the wave of bankruptcies, reports CFO.com.
While nearly half say interest rates could be the triggers, others point to home prices, commodity prices, global competition, the equity bear market, the decline in consumer spending and unfunded pension plans.
But then, it probably won't come down to just one trigger. The threatened wave of bankruptcies is the result of easy credit in what's been a low-interest rate environment. When debt is cheap, companies tend to pile it on. And when debt is high, slight movements in any of these trigger points could bring on disaster.
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