The Fed

[SuburbanFarmer]

Oh he is desperate now.

https://www.zerohedge.com/news/2019-04- ... -calls-qe4

[TheReal_ND]

Quick run down

[SuburbanFarmer]

2% annual inflation.

935B0013-2486-43F9-8717-3D061F5D60C6.png

[Speaker to Animals]

This time it's for real, guys.

[Fife]

Thanks for all the zombies, Fed.

The Zombie (Company) Apocalypse Is Here

One of the most significant economic developments since the Great Recession has been the zombification of the economy.

A zombie company is a term introduced to the lexicon by an influential paper, Zombie Lending and Depressed Restructuring in Japan, by economists Ricardo J. Caballero, Takeo Hoshi, and Anil K. Kashyap. The official definition of a zombie company according to the Bank for International Settlements (BIS) “is a publicly traded firm that’s 10 years or older with a ratio of earnings before interest and taxes (EBIT) to interest expenses of below one.” More simply put, zombie companies are companies that are unprofitable — so unprofitable they are unable to pay even the interest on their debt out of their profits. They are effectively bankrupt but kept alive by banks continuing to lend them money to pay their existing loans.

. . .

According to the BIS, the share of zombie companies in the US doubled between 2007 and 2015, rising to around 10 perceent of all public companies. And counterintuitively, as interest rates have fallen lower and lower the number of zombie companies has increased.

. . .

Zombie companies are kept alive only with low interest rates and/or lax banking regulation. But as bankers assembled last month in Stockholm for the annual meeting of the International Capital Markets Association pointed out: “The question is, with the debt level where it is, can central banks ever afford to let interest rates go back up because it will lead to a major bankruptcy wave.” Zombie companies pose a significant challenge for central banks, because in a very real sense their hands are tied — they cannot raise interest rates significantly without causing a huge number of companies to go bankrupt.

The world now has the impossible choice of permanently reduced productivity and slower economic growth — or the mass bankruptcy of a significant percentage of the economy.

[Zlaxer]

Thanks for all the zombies, Fed.

The Zombie (Company) Apocalypse Is Here

One of the most significant economic developments since the Great Recession has been the zombification of the economy.

A zombie company is a term introduced to the lexicon by an influential paper, Zombie Lending and Depressed Restructuring in Japan, by economists Ricardo J. Caballero, Takeo Hoshi, and Anil K. Kashyap. The official definition of a zombie company according to the Bank for International Settlements (BIS) “is a publicly traded firm that’s 10 years or older with a ratio of earnings before interest and taxes (EBIT) to interest expenses of below one.” More simply put, zombie companies are companies that are unprofitable — so unprofitable they are unable to pay even the interest on their debt out of their profits. They are effectively bankrupt but kept alive by banks continuing to lend them money to pay their existing loans.

. . .

According to the BIS, the share of zombie companies in the US doubled between 2007 and 2015, rising to around 10 perceent of all public companies. And counterintuitively, as interest rates have fallen lower and lower the number of zombie companies has increased.

. . .

Zombie companies are kept alive only with low interest rates and/or lax banking regulation. But as bankers assembled last month in Stockholm for the annual meeting of the International Capital Markets Association pointed out: “The question is, with the debt level where it is, can central banks ever afford to let interest rates go back up because it will lead to a major bankruptcy wave.” Zombie companies pose a significant challenge for central banks, because in a very real sense their hands are tied — they cannot raise interest rates significantly without causing a huge number of companies to go bankrupt.

The world now has the impossible choice of permanently reduced productivity and slower economic growth — or the mass bankruptcy of a significant percentage of the economy.

Woh - that's a Zlaxer "Doomster" type post. Where are thou, Harry?

Like I said - print and bond - We will receive salvation when no one wants to buy Uncle Sam's shit.

[Fife]

"Zombie" status is an interesting (and objective) metric.

Fucking Walking Dead up in this beeotch.

[pineapplemike]

[Zlaxer]

"Zombie" status is an interesting (and objective) metric.

It's also candid.

[SuburbanFarmer]

Actual post-scarcity spotted. Fix news immediately recoils in horror.

https://www.foxnews.com/science/nasa-he ... Id5A-OMMr8