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Monday, August 4, 2008

Small Business Bankruptcies 2008

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Stock investors, traders, and blog readers:

I came across an article on bloomberg that dates back to April, and reveals statistics that show real difficulties in the economy. Small business are at the heart of economic well being, and usually employment in this area not reflected in the big numbers. Therefore, statistics on such businesses reveals things we cannot see on the other statistics:

Excerpts from Bloomberg Article:

Business bankruptcy filings in the U.S. increased 49 percent in April from a year earlier, the biggest gain so far in 2008, as the slowing economy prompted more companies to shut down.

Business petitions rose to 5,173 during the month, according to statistics compiled from court records by Jupiter eSources LLC in Oklahoma City.....

``When you go into a downturn, the cyclical industries tend to get hit,'' said Mike Englund, chief economist at Action Economics LLC in Boulder, Colorado. ``Any sudden downshift in growth will generate rises in these numbers.''

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