With the economic malaise caused by the pandemic more than likely to persist over the next few years, there is a higher possibility businesses will be stricken with a high-pitch fever, gradually turning them into zombie companies.
The term originated in Japan to describe companies that were only generating enough cash to pay interest on their debts, also meaning an uncompetitive company that needs a bailout to successfully operate.
These companies do not earn enough to reduce the principal amount of their debt. Read more…..
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Nouriel Roubini, NYU professor and former White House senior economist under U.S. President Clinton, joins BNN Bloomberg to discuss why he predicts a depression will hit the global economy in the middle of the decade.