Chronic Low Interest Rates Gave Rise to Zombie Firms
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https://www.washingtonpost.com/business/2020/06/23/economy-debt-coronavirus-zombie-firms/
Chronic low interest rates are keeping more and more unprofitable businesses alive — businesses that don’t make enough money to even cover their debt interest payment. One fifth of publicly listed companies in the USA are in this category.
Apparently we have seen this movie before, first in Japan in the 1990’s, then in the Europe. Now we’re just looking at the American remake.
