The Risk of the “Bailout Of Everything”
Envision a zombie economy, moving languidly but dead on the inside, and infectious to any living remnants in the economy.
(From Dlacalle.com)
The big problem is that massive liquidity and low rates are perpetuating overcapacity [OR THE WRONG CAPACITY] and keeping an extraordinary amount of zombie firms alive.
Maintaining and increasing zombie firms destroys any positive effect from re-structuring and innovation.
Reprinted from: https://www.ac2news.com/2020/06/the-risk-of-the-bailout-of-everything/
