Beware not just of “zombie” companies but of “zombie markets” as asset prices become distorted and detached from fundamentals, warned Allianz chief economic advisor Mohamed El-Erian. “I think we’ve got to be careful about zombie markets,” he said. “We’re not there yet, but we’re starting to get close.” “Zombie” companies continue to operate by borrowing money, even though they are unable to pay off their debts. Record low-interest rates have contributed to a growing number of such firms over the ...
Right on the money. Worth 14 min listening. While it explains some of the current phenomens in the financial markets it still want make DOW crash as it would had it followed the normal econmy.