Wednesday, June 17, 2020

The Emergence of Zombie Market

The Emergence of the Zombie Market

Janpha Thadphoothon

The phrase 'zombie firms' has been around for some time, referring to firms or companies unable to service debts over an extended period of time, but have been heavily subsidized by the authorities or outsiders. If you ask me to name a few, I am sorry to omit this part. But I am sure you can think of some without much effort.

The original use of this discourse is in the context of stock markets or investment. Under that context, a zombie company (also known as zombie firm) is "a firm that is unable to stand on its own feet – it either needs one or a series of bailouts, or is kept afloat by lenient creditors and below-market interest rates. (MBN)"




Another related term recently made available on the Internet is this - Zombie market' - the market  highly manipulated by external non-market force, often unpredictable and volatile.



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