It's Alive! The Rising Share Of "Zombie" Firms

The US central bank does whatever it takes to support a broken economic theory (neoliberalism) and thereby disallow the economy to reallocate resources to be put to more productive use through the natural (yet painful) creative destruction healing process of a recession. The US central bank facilitates consequences such as income inequality, reactionary political outcomes (e.g. authoritarian leaders) and the zombies that you see in the chart below.

When and how the breaking point comes, no one knows. But the load is getting greater and greater with each passing dip into the QE to infinity toolbox.


 


 

Disclosure: Accounts managed by Blue Marble Research may presently hold a long/short position in the above mentioned issues and their inverse comparables.

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