We’ve talked a lot over the years about zombie companies, those companies that have not been able to make any principal payments, let alone all of their interest payments for at least three years. But the banks and other lenders don’t want that to show up on their books. So they loan them the money so that they can at least make most of their interest payment. And then any excess goes on. And so what they’re really growing is more and more and more debt. Well, the IMF just came out with a report on it. And I think you really need to know about it.

CHAPTERS:

0:00 Zombie Companies
1:28 IMF – Rise of the Walking Dead
3:32 We See Patterns
6:20 Average Share of Zombie Corporations
8:54 Mean Duration
11:39 Markets Saying to Fed
13:42 Profits Look Shaky
16:43 Junk Loans Defaults Surge
20:09 Powell Wake Up Call!
22:22 Long Term Benefits of Owning Gold

SLIDES FROM VIDEO:

SOURCES:

https://www.imf.org/en/Publications/WP/Issues/2023/06/16/The-Rise-of-the-Walking-Dead-Zombie-Firms-Around-the-World-534866?cid=em-COM-123-46761

https://en.wikipedia.org/wiki/Zombie_company

https://www.tradealgo.com/news/with-a-potential-fed-pause-on-the-horizon-investors-are-shifting-into-high-yield-etfs

https://www.ft.com/content/46f4c713-812e-4b0c-961b-ffbe54b6121e?segmentId=114a04fe-353d-37db-f705-204c9a0a157b

https://www.ft.com/content/57982ca5-c5da-4154-8524-e7ef7987d028

https://www.ft.com/content/84c7f8a2-9e93-4f42-a8b8-bf5d225d8ca8?segmentId=114a04fe-353d-37db-f705-204c9a0a157b

https://www.bloomberg.com/news/articles/2023-06-17/powell-wake-up-call-means-more-corporate-defaults-credit-weekly?sref=rWFqAg1Y

https://www.gold.org/goldhub/data/2023-central-bank-gold-reserves-survey