Researchers from the Bank for International Settlements found that the number of zombie firms – those unable to cover debt-servicing costs from profits – is over 12 percent globally, while it’s approaching 15 percent in the US.
According to the Keiser Report, the ‘zombie bank plague’ is currently spilling over to zombie corporations.
Max and Stacy say that Lloyds, HSBC, BNP, Citibank are technically insolvent but are kept alive even though they are zombies thanks to the perpetual rolling of bailouts, called quantitative easing. This has now spilled over to the general economy and corporations listed on the S&P 500.
“Those are the companies that cannot maintain their viability through profits; they are reliant entirely on blood transfusions,” says Max, adding: “This is a vampire economy, a Frankenstein economy, a zombie economy.”
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