The Walking Dead of the Business World

Source: American Consequences
by Dr. David “Doc” Eifrig

“Beware of the zombies. For those of you who have watched too much of the TV show ‘The Walking Dead,’ I’m not talking about a reawakened corpse … I’m talking about a ‘zombie company.’ These are companies that don’t make enough money to pay even the interest on the debt they’ve accumulated. Basically, they’re living on borrowed time. The number of zombie companies has been steadily increasing since the 1990s. But because of COVID-19, that number has skyrocketed. According to Bloomberg, since the start of the pandemic, a few hundred major companies have become zombies. There are now more than 700 of them out of 3,000 of America’s largest publicly traded companies. In total, they have roughly $2 trillion in debt — a figure almost the same size as Italy’s economy.” (09/07/21)