There seems to be mounting optimism that the US economy will rebound relatively quickly as states begin opening up and there is progress toward a coronavirus vaccine.

But the optimism ignores deep problems in the US economy the existed before the pandemic  – chief among them staggering levels of debt and the proliferation of zombie companies.

In the last couple of years, corporate debt has blown through the roof. So much so that the Federal Reserve issued warnings about the increasing levels of corporate indebtedness late last year.



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