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How Unprofitable Companies Stay In Business
Posted
October 31, 2023
Views
915,823
Likes
9,246
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690
Engagement
1.08%
October 31, 2023
915,823
9,246
690
1.08%
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Some firms sustain their businesses by taking on more debt that they likely could never repay. Economists call them zombie companies. When compared to their peers, zombies are smaller in size and deliver lower returns to investors. These companies distort markets, keeping resources from their fundamentally sound competitors. Banks and governments keep zombie firms alive with bailout loans. As the Fed resets the economy with higher interest rates, many zombie firms are filing for bankruptcy.
Chapters:
Produced, shot and edited by: Carlos Walters
Animation: Alex Wood
Supervising Producer: Lindsey Jacobson
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How Unprofitable Companies Stay In Business
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