Financial Times/Andrzej Rzonca/8-10-2022
“Zombie companies — businesses whose operating profits are persistently lower than their interest payments — have something in common with high global inflation. Surprisingly, the root cause of both is the Federal Reserve.”
USAGOLD note: The Great Enabler zombified about 10% of the public companies in the United States to what end we can only guess. Rzonca red flags on a problem largely overlooked when rates were low, but now that they are rising and rising rapidly, a major shakeout may be around the corner
