Tag Archives: COVID

When Companies Don’t Die: Analyzing Zombie and Distressed Firms in a Low Interest Rate Environment

By | September 7, 2021
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Last September, The Economist published an article titled “Why Covid-19 will make killing off zombie firms harder.” The article fueled an already widely debated topic and expresses general concerns that schemes put in place to help pandemic-stricken businesses to survive might exacerbate therise of the corporate undead. The ongoing crisis highlights the necessity of analyzing the ”zombification” phenomenon; a constellation in which public support schemes and bank lending activities could keep non-viable firms afloat for longer. There are several examples… Read More »

The Pandemic Crisis Shows that the World Remains Trapped in a “Global Doom Loop” of Financial Instability, Rising Debt Levels, and Escalating Bailouts

By | August 19, 2021
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In January 2020, I completed a book analyzing the financial crises that triggered the Great Depression of the 1930s and the recent Great Recession.  In that book, I argued that the world’s financial system was caught in a “global doom loop” at the beginning of 2020.  Bailouts and economic stimulus programs during and after the global financial crisis of… Read More »