The bankruptcy of publicly traded companies happened. But it was shocking to see a publicly traded company to file for a bankruptcy not just due to the economy but by other factors. Also, this type of company was not just some weak and small company, but it was suppose to be a strong and stable in preference. What was very important was that it had an immediate affect on us but a domino effect in the economy. It didn’t just affect the employees of that company but it affects the economy as a whole.

With a weakening US economy bankruptcy of publicly traded companies, the amount of companies that went bankrupted had gone up from 1

The current economy is still in a recession and it seems like that it will take awhile to jump out from the recession until we see any real signs of economic growth that will stimulate the economy. The current economic outlook is very grim. There are even more expected bankruptcies and even more jobs to be cut. Finding a job in the market is now more competitive than ever. Companies are still hiring but limited amount of spaces that can accommodate the thousands of laid-off workers. The stock market is very volatile. For one day it can go up 200 points and for the next day, it can go down to 200 points before the close of the market. This means that the consumer confidence is still very unsteady because of the bankruptcies of large blue chip companies and the multiple accounting scandals done all by blue chip companies.

Many of those companies that went bankrupted could no longer pay what they had to owe. So, the financial institutions that had lent them money from the past would be the first ones in line to collect what they had lent out. But not all financial institutions could collect all that they had lent out. So, those financial institutions had to take those as a bad credit expense and write it off. Also, with the devaluation of the US dollar, many foreign direct investments had been transfer out of the US. The devaluation was caused by the instability of the US economy and could affect many different countries that rely on a strong US currency. Japan relies on a strong US currency so that they can export more to the US.

The bankruptcies of the publicly traded companies created a recession. Thus, during a time of recession, companies that was still in the market had to find ways in order to pull up their revenues. The first thing they looked at was to cut costs. By cutting costs, they had created more unemployment which brings a tumbling down effect. Be

Some topics in this essay:
WorldCom Enron, United United, stock market, publicly traded, consumer confidence, financial institutions, blue chip companies, publicly traded companies, chip companies, companies bankrupted, traded companies, accounting scandals, blue chip, , markets economy, foreign direct investments, economy bankruptcy publicly, bankruptcy publicly traded,