Recession Reality Near as Bankruptcies Rise

All signs point to a U.S. economy recession as bankruptcy filings in states severely affected by the housing crunch witnessed a sharp rise in March.

A figure of over 90,000 bankruptcy filings is the highest since insolvency laws became more restrictive in October 2005. According to statistics published by Jupiter ESources, filings in March were 30% above the pace in 2007, with states such as California, Nevada and Florida, which have been affected most by the housing recession also witnessing significant increases in bankruptcies.

With fewer jobs, mounting foreclosures coupled with rising bankruptcies, Federal Reserve Chairman, Ben S. Bernanke acknowledged that the economy might be facing a recession and vowed to act to cushion the slowdown.

In order figures released by the Labor Department, the economy lost 80,000 jobs in February, the biggest loss since March 2003, following larger than previously reported declines of 76,000 in each of the two prior months.