Lions… (I have a backlog of things I am working on for you).
But I want to start off with what is going on RIGHT NOW… regarding zombie corporation with examples. (Please feel free to look up any of this stuff/fact check me).
Lets start with this.
A Zombie Corporation is a company that can’t generate enough profit to cover the interest payments on its debt. It’s financially dead but kept alive by cheap borrowed money. These companies survive only because, interest rates are low (or manipulated), they refinance constantly or on central banks pumping liquidity into the system. They consume resources without producing real growth, they inflate stock markets falsely, and when rates rise or credit tightens, they collapse, triggering layoffs, defaults, and contagion.
Zombie corporations are the walking dead of the financial world, propped up by debt, feeding on illusion, and collapsing the moment the system demands life instead of leverage.
As of mid 2024, there are nearly 7,000 publicly traded zombie companies worldwide, with 2,000 in the United States alone. This surge is attributed to years of low-interest rates that encouraged excessive borrowing. PERIOD.
Notable Examples (various sources used). Several well-known companies have been identified as zombie corporations. (There are more, I have listed just a few below).
Carnival Cruise Line (CCL): Struggling with high debt levels exacerbated by the pandemic's impact on the travel industry.
JetBlue Airways: Facing financial challenges due to increased operational costs and debt.
Peloton: Experiencing declining sales and profitability issues post-pandemic.
Manchester United: Dealing with significant debt amidst fluctuating revenues.
Wayfair: Confronting profitability challenges despite revenue growth.
AMC Entertainment (AMC): Battling with substantial debt and changing consumer behaviors.
Hertz Global Holdings (HTZ): Emerging from bankruptcy but still facing financial headwinds.
THE GLOBAL FINANCIAL SYSTEM IS A ZOMBIE STRUCTURE.
Why?
Lions… THIS IS THE BIG SECRET THAT YOU ARE NOT SUPPOSED TO KNOW. The system itself is a zombie because it consumes way more than it produces. Governments run perpetual deficits borrowing to fund basic operations. Central banks print money not for growth, but to push off collapse. Corporations even borrow to buy back shares of their own stock! Not to innovate.
There is no real recovery from this. And all we hear about is DEBT EXPANSION.
GM
Great dip to buy metals
Much appreciated