Why were all the bankruptcies announced around the same time?

[cafucafucafu]

During the last financial crisis, all these companies decided to announce bankruptcy at around the same time. Why?

[1713994596]

1713994596

[neurotypical]

During the last financial crisis, all these companies decided to announce bankruptcy at around the same time. Why?

Everyone was waiting that the next guy would declare bankruptcy. Once one bites the bullet the rest follow, this way it causes a chain reaction where no one really loses, specially if they are important businesses, they always get saved by the state with people's money.

[Foxpup]

Because all those companies went bankrupt at the same time. They all held the same kinds of assets or were dependant on those who did, so when the assets become worthless, so did the companies.

[Amph]

because they don't want to reveal to other countries that your situation is crital, and you're in a bad economic condition, it is a form of shame after all

or simply coincidence

[lihuajkl]

During the last financial crisis, all these companies decided to announce bankruptcy at around the same time. Why?

IMO it is the macro environment they are running on that are enforing the companies to make such hard decision. The company's business is relied on the health of the overall economy, such as GDP, inflation, employment, spending, and monetary and fiscal policy. So they end up not continuing losing money and have to go to bankruptcy.

[Q7]

That is because banks lend to each other and when one of it ran into trouble, it will drag the rest along. These are all caused by bad debts and I wouldn't be surprised that the laws and regulations did not really address all these to enforce and prevent another one from happening. And don't forget we also have the politicians to ruin it.

[AtheistAKASaneBrain]

because they don't want to reveal to other countries that your situation is crital, and you're in a bad economic condition, it is a form of shame after all

or simply coincidence

I don't believe in coincidences. Like you said, it's just a political cold war were if you reveal your position, you are automatically in a disadvantageous situation, therefore, it's pretending game until the adversary collapses, which both you and your adversary don't know when that happens.

[goosoodude]

During the last financial crisis, all these companies decided to announce bankruptcy at around the same time. Why?

Because they were connected like all banks are. Each bank hold liabilities against other banks. And each bank had papers that suddenly werent worth anything anymore. So suddenly they had less money in their books and it was often enough a hit big enough to make them go bankrupt.

Its the globalisation and market connection...

[ThEmporium]

During the last financial crisis, all these companies decided to announce bankruptcy at around the same time. Why?

Certainly all banks are connected as a chain all over the world, most of the banks are at least having a small branch in other parts of the world. This way they are interconnected with other region banks, so while they fell bankruptcy the other banks who has given debt to them will also fall into the crisis and that causes them to announce about their status at the same time.

[Miracal]

Declaration of bankruptcy for a company creates a huge panic in the market. If all the companies together declare bankruptcy, their value remains the same as all of these depend on each other. In this way, the collateral damage is reduced and helps the shareholders to keep their shit together.

[Mehek]

Declaration of bankruptcy for a company creates a huge panic in the market. If all the companies together declare bankruptcy, their value remains the same as all of these depend on each other. In this way, the collateral damage is reduced and helps the shareholders to keep their shit together.

Bankruptcy is a legal status of a person or a company or an entity that cannot repay the debts it owes to creditors. These creditors will come kick your ass if you don't pay their fucking money, but filing bankruptcy helps you to pay them back later. Bankruptcy is filed through the court and is protected under certain laws.

[Miracal]

Declaration of bankruptcy for a company creates a huge panic in the market. If all the companies together declare bankruptcy, their value remains the same as all of these depend on each other. In this way, the collateral damage is reduced and helps the shareholders to keep their shit together.

Bankruptcy is a legal status of a person or a company or an entity that cannot repay the debts it owes to creditors. These creditors will come kick your ass if you don't pay their fucking money, but filing bankruptcy helps you to pay them back later. Bankruptcy is filed through the court and is protected under certain laws.

There are a lot of rules and regulations to get bankruptcy legal status, a person can't fraud and get away with it. Check out these laws: https://www.law.cornell.edu/rules/frbp

[n2004al]

During the last financial crisis, all these companies decided to announce bankruptcy at around the same time. Why?

I think because this was the moment in which the bankruptcy of those happened. In a situation of crisis the things happen very soon and the events follow one another with a very high speed. In the today world everything is connected with everything. So if something happen to one of everything this reflected immediately in all the others. Immediately.