In another bit of good economic news, the list of U.S. business bankruptcies will likely get shorter, and probably less distinguished, in 2011, just as it did this year. Still, several factors beyond an improving economy are also at play here.
Several data points this week confirm an ominous new trend among desperate consumers: They have stopped paying their mortgages but they're continuing to pay off their credit cards so they can keep buying staples, like food.
Global corporate defaults totaled 265 in 2009, the most ever. A report by Standard & Poor's also confirms that the 193 U.S. company defaults set a record as well. But now, at least, S&P forecasts significantly improved levels of default risk for 2010.
