Why the economy hasn't seen a wave of business bankruptcies : The Indicator from Planet Money When the coronavirus hit, economists predicted a tsunami of bankruptcies. But that hasn't happened.
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Where Are The Business Bankruptcies?

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Where Are The Business Bankruptcies?

Where Are The Business Bankruptcies?

Where Are The Business Bankruptcies?

  • <iframe src="https://www.npr.org/player/embed/868019680/868043012" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
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Antonio M. Rosario/Getty Images
Shuttered store with "Going out of Business" sign
Antonio M. Rosario/Getty Images

Economists warned that lockdowns due to coronavirus would set up a huge battle between landlords and their corporate tenants, as falling revenues would make it impossible for companies to pay their rent. They said the result would be a wave of bankruptcies....But weirdly, that wave hasn't arrived.

It turns out a hierarchy of forbearance, where everyone, from banks to landlords to businesses, are giving their clients a break on paying their bills - at least for awhile. That, combined with a fear of the unknown has frozen the economy, and that freeze has kept the wave of bankruptcies at bay. For now.

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