The United States was waiting for the zombie apocalypse. The country was given a coronapocalypse instead.
But could the two events merge and provide the nation with a dangerous economic trend? Corporate America’s worst-kept secret had been the swelling number of zombies kept on life support and hidden away during the boom phase of the business cycle. Now that the coronavirus pandemic has exposed the fault lines underneath the economy, the zombification may accelerate due to a toxic concoction of Federal Reserve stimulus and congressional relief. Will zombies leave their graves, searching for freshly created US dollars and feasting on the carcass of the ailing marketplace?
A zombie company is a business that requires perpetual bailouts to keep its doors open, or it is a deeply indebted firm that can only repay the interest on its debt. The zombification has been eating away at Japan and China, and now it is gradually infecting the US economy. What’s worse is that American zombie businesses employ about 2 million people, according to new Arbor Data Science figures.