The percentage of companies that can’t afford to pay the interest on their debt has reached a new all-time high in the wake of central bank intervention.
Today on the Brief:
- MicroStrategy increases its bitcoin reserves by $175 million
- The Oracle-TikTok deal starts to smell fishy
- The SEC is investigating claims of fraud involving Nikola Corp.
Our main discussion: The rise of zombie firms.
A zombie firm is a company that can’t afford to service its debt from operating income. These companies are made possible by artificially low interest rates, and they drain resources from the economy.
On today’s episode, NLW explains:
- Why there are more zombie companies than ever
- The negative impact they have on the economy
- How they could drive a new financial crisis