There is an abandoned Toys “R” Us in nearly every community across the country. This iconic company finally fell after decades of being the most important toy store in America. The company collapsed under $5 billion in debt after 70 years. It simply could not make payments on the $400 million in yearly interest so it finally filed for Chapter 11 bankruptcy.
The company initially struggled to bear the weight of this financial burden to continue operating, but a federal judge ordered the toy company to liquidate assets. It seems that the Internet killed one of America’s largest companies.
Stansberry Research believes that the fall of Toys “R” Us is just the first of many giant corporate bankruptcies. The investment research company believes that the Internet has fundamentally changed the game for brick-and-mortar companies and that these massive companies lack the dexterity to change.
All of this information comes from Stansberry Research. If you are at all interested in the stock market or money-management then you should begin taking advice from them. They bundle all of this knowledge into highly entertaining articles that read like blogs. It’s like your best buddy is giving you money advice.
But the last one I read was pretty grim. One by one, Stansberry Research believes all of our beloved big box stores will simply crumble under the weight of the Internet. These companies will fall like dominoes to create a cascade of financial difficulties throughout our economy. Stansberry Research says that it could cause the next great economic downturn which will be much worse than the economic collapse of 2008.
The stock market is a place to invest in large companies. The largest companies command the most respect and eat up the majority of the market share. The collapse of a massive company sends a title wave throughout the market. Vultures descend to invest in the demise of massive companies which transfers a great amount of wealth to new hands.
It looks like the next economic downturn could be the biggest transfer of wealth in the short history of our complex stock market system.