Zombie companies are institutions that cannot fulfill their commitment, and live on a vicious cycle of debt, to survive, without Debts Leaves life and closes its doors.
phenomenon The zombie companies She continued on Inflation Even its share of non-financial companies in 14 economies advanced from one percent at the end of the eighties to 12 percent today.
The huge growth of the zombie companies reflects the dark side of the low interest rates that swept the markets during the past decade, as they enabled these companies to expand the debt at a low cost.
The risk of the existence of zombie companies lies in the fact that any increase in interest rates may lead them to bankruptcy, in addition to the continued adoption of low interest rates, which may increase the growth of these companies in the future.
Although continued support for zombie companies maintains jobs, this perspective is misleading, because it reflects the misuse of financial resources from which successful companies could benefit and provide more jobs.
And the phenomenon of zombie companies may deepen, to express a much broader problem, which is the expansion of the size of global debt to record levels in the past two decades to reach 250 trillion dollars, or three times the size of the global economy, and that constitutes a burden of 35 thousand dollars per person in the world.
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Zombies Or dead living, a term we might hear about in novels and horror movies, but it is also a term for some companies.
Zombie companies are institutions that cannot fulfill their commitment, and live on a vicious cycle of debt, to survive, without Debts Leaves life and closes its doors.
phenomenon The zombie companies She continued on Inflation Even its share of non-financial companies in 14 economies advanced from one percent at the end of the eighties to 12 percent today.
The huge growth of the zombie companies reflects the dark side of the low interest rates that swept the markets during the past decade, as they enabled these companies to expand the debt at a low cost.
The risk of the existence of zombie companies lies in the fact that any increase in interest rates may lead them to bankruptcy, in addition to the continued adoption of low interest rates, which may increase the growth of these companies in the future.
Although continued support for zombie companies maintains jobs, this perspective is misleading, because it reflects the misuse of financial resources from which successful companies could benefit and provide more jobs.
And the phenomenon of zombie companies may deepen, to express a much broader problem, which is the expansion of the size of global debt to record levels in the past two decades to reach 250 trillion dollars, or three times the size of the global economy, and that constitutes a burden of 35 thousand dollars per person in the world.
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