So basically since money is so cheap there’s no incentive for lean productivity and creative business models?

In 2008 they kicked the can down the road and in 2021 we found the can again

*government shoots Hannibal* “why would capitalism do this?”

He is absolutely right. WHen you have companies like MSTR raising capital not to invest back into their business but to gamble in bitcoin, it is absurd!

I’d fight the Fed but I would be charged with insurrection

Stock can drop from top to bottom and still be a 60 bagger. All this in 10y. investing is a very long journey where our temperament gets tested. have to have the capacity to suffer for long periods. have lived through the examples above, naming the stock today is pointless.

Hilarious. This guy thinks we still have capitalism.

Wow he just came to this conclusion? Morgan Stanley I could have told you this 10 years ago for half of this guys salary.

Productivity is what raises standard of living, not printing money. Otherwise all governments would be printing money!

i appreciate this observation "Zombie companies" in numbers.

When capital is kept artificially cheap it will be wasted.

When there's no clear option, do nothing.

Why do they need another 1.9T stimulus bill when the treasury general account is sitting at like 1.6T ?

I feel so bad for poor Capitalism. Little capitalism never hurt anyone. We got to stop this nasty stimulus and help the air lines.

Andrew Yang 2024. Entrepreneur, created startups and jobs in underinvested cities in the 2010s. Ran a 2020 campaign on Universal Basic income, reducing monopoly power of zombie companies, and developing a "trickle up economy". Mayor of new york in 2021, look out!

The reason for increased inequality is this stimulus. You want to give reparations, that will increase inequality too? 80 percent of everything is owned by 20 percent of people. And 80 percent of the 20 percent is owned by 20 percent of the 20 percent and so on and so forth.

Isn’t it funny this what we were criticizing the Chinese government for years ago?

Wait, how many of those zombie companies are tech companies investing into the future, like amazon did?

Kudos to the host that tried so hard put China on a bad note but it ended up backfiring. Yes China still holds some state owned enterprises on basic utilities like power, transmission but the growth of China is attributed to the growth of private businesses. The debt they made is due to their rampant infrastructure investment on transportation and not some useless foreign manufactured wars and regime changes.

Zombiefication is real. But it's NOT the stimulus we see. It's the collections moratoria (including unofficial commercial collections moratoria) we DON'T SEE.

The chart is wrong. There's no 11. It's an 01

Central bank intervention inevitably leads to malinvestment & misallocation of scarce resources.

You're trying to convince the masses, that doing the minimum amount of effort, to assist them is a bad idea?

Printing money and sending checks to people is about redistribution, not quality economic growth that raises standard of living.

Hi Sharma: You defined a Zombie company as one that does not have enough profit to cover their interest expense for 3 years in a row. Couldn't this definition include many/most startup companies that are subsidized by investors? I have the impression that both you and the host envision stale old businesses waiting to die. Couldn't an argument be made that America is incubating more startups now than ever in the past...and that's very positive? Does the research differentiate between old and new? Thank you

If prices and inflation goes up, then his relative wealth is getting smaller. Cry me a river.

This is a brilliant man!

3:50 "... the key to sustainable growth ..." "sustainable ... ... growth" lol

Today it's not about return ON capital. Today it is about return OF capital.

Zombification occured over the last 30 years... Resulting in a predisposition for the economy to easily tip into a deflationary spiral. Stimulus is one way to counter it, and it's the only way that is allowed because congress and corporations don't want to change and don't want to work towards a new and improved economy. So, more debt and more disposition to crisises that could lead to a deflationary spiral. If you don't like stimulus, then raise wages, add profit share and bonuses that tie workers into getting some of the profits so that CEO pay isn't so obscene. Then when you diverge into a conversation about BitCoin, BitCoin is not limited in supply. There is nothing keeping additional bitcoin look alikes to be formed and compete. There's nothing keeping anyone from taking the math results of mining from BitCoin and transfering those results over to other coins. It's a chain letter type of gimick to avoid oversight so that drug and gun runners can move money without bank regulations tracking the moves, that's all it is.

rich people saying the problem is rich people giving too much money to rich people... but wont give money to the People.

Just today I went to my local grocery store and hamburger meat went up .50 cent a pound in one day. A 10 percent increase. Trump and Biden printing press. The two printed up 6 trillion dollars. Warren Buffett seems to think it's ok. So we just print more .

wait wait wait... but aren't many companies finding legal ways to hide profits (i.e. having "no profits") as means to avoid taxes?

And this guy voted for Slow Joe. Of course the economic status of America will get worse.

Not enough workers. Better said , more brave too .

Even companies coming through SPACs are zombies ... just speculative grade equity deals

Short-term: Don’t let them bite you. Long-term: Burn the fuckers.

brrrrrrrr brrrrrrrrrrrr

buy some gold and silver before its to late if you dont hold it you dont own it

These stimuli are non-productive. Nothing is produced for the money. Jeremy Grantham predicts a huge (50-80%) drop in the stock market this Spring.

Zombie companies are primarily in innovative mode and have room to play around without failing.

Zombie companies seem to be structured like pyramid ponze schemes

Our dollar will eventually become valueless as we print more dollars and our standard of living is going to get worse due to inflation. This is why I am buying some Bitcoin as an insurance policy. Yes, it's risky, but there is no central government controlling it and there is a limit of 21 million Bitcoins that can be created. Even the Morgan Stanley Chief acknowledges the merits of Bitcoin.

Too much money chasing too few goods? Please. People don’t have enough money for food. Is there a shortage of food that will send prices skyrocketing? Absurd.

What could go wrong??

But had the market been fair and not rigged by stimulus communism we wouldn't see record inflows to equities and not seeing bond yields as low as they are, stocks as high as they are and gold and property at all time highs. This is where the stimulus money goes to. A fraction goes to productive business that employs people and builds wealth.

MORE STIMULUS > MORE MONEY TO CRYPTO MARKET > MORE MASS ADOPTION

gme and amc. i like the stock

Maybe the problem is thinking this is an unintended consequence.

we know that the system is fucked up for very long time ... no need to be finance analyst with high salary.

I thought capitalism was undermined when we decide it’s ok to launder money for drug cartels as long as you are a big enough institution.

The only stimulant I like is the caffeine in my chocolate.

Sharma speaks the truth but need subtitles to understand him.

Bitcoin SV is electronic cash on peer to peer network, not certainly Btc

Legacy companies can go to hell .... zombies can have em ... ::)))))

Greed is good...

Him: US is becoming kinda like china Me: wait, thats illegal.....

Interesting last point about how both China and the US economic models could be converging because of zombification, especially at a time where both economies are undergoing decoupling

Gold and silver shares for the win by the end of the year. Get positioned now they are a Bargin

Bloomberg is clueless. Fed has said over and over a stimulus is needed.

Just remember they want you to be poor.

Interesting but highly inaccurate. Zombies are a problem but productivity is also going up overall (pandemic-adjusted). Lastly, the 20% currency statement doesn’t take into consideration retired currency that gets sent back to the Treasury and destroyed and exchanged for new bills. Am I wrong? Maybe but then again no one really knows what’s going on so here’s my two cents lol.

An interviewer who says, 'their (China) state control of the economy' should be in danger of losing his job. Yea Gods boy, the US Fed and Treasury is far more in charge of the local market than China has been of theirs for 20 years. True they copied the Japanese directed growth model (which the US shut down in the 90s) and they do invest the people's money in Chinese productivity, but it is entrepreneurship on full tilt. Many Chinese companies have more overseas investors than Chinese government money! America relies on printing on its labels and boxes 'made in USA' and boosting profits through share buy backs paid with American taxpayers' US$. Those dollars the rest of the world has paid for time and again and our reward for giving the US 50 years of free money is to see the market flooded with the stuff. We no longer need it. Chinese companies even pay tax to the Chinese government. The difference between China and the US is right here ... kzfaq.info/get/bejne/ocuEldpnzNare5c.html

Number of startups declining. Spacs launching everyday.

Ur now talking about this

Stimulus is not causing zombification because stimulus only offsets a fraction of the tolal money that would have been created if the Pandemic did not occur. Due to pandemic, unemployment, decreased sales/profit, and folding of business drastically reduced money supply.

LMBO, like Shin Godzilla, everyone is horrified to see #crapitalism's final form, it's called #fascism

Just look back fundamentally from the past history to back test the gdps national debt. And it took only 8.7 trillion for the 2008 crisis where at 29 trillion about 64% in debt in our GDP. U do the math it's not rocket science.

Seems like Morgan Stanley has gone short the market and purchased puts so it's time to pump out doom and gloom propaganda through minions from India...you love that stimulus Mr Sharma don't come and play academic as you aren't saying anything new

We wait untill gdp debt get to 64% just to tell everyone.

Potemkin market!

All this "babbling" and nobody can tell when exactly are we going to have a huge inflation. Also ordinary people and small investors are in the shadow because we don't know what ECB in Europe or US monetary fund are going to do. So far I just see that all equity/investments are going up in price. People who were expecting deflation and were working hard to accumulate cash are robbed of their wealth.

capitalism? lol you don’t halt trading securities in capitalism

Bitcoin, buy Bitcoin to hold your money. It is limited. But if u have money you can endless Bitcoin. Every thing makes sense.

The interviewer played a buzzword bingo here huh?

We would be lucky to turn into China.

Ok maybe worker is to non specific. Dealing with demons here .... life affirming work done with willing participants.

Too late now. Everything is going precisely as planned.

Bitcoin supply is NOT finite! FFS. This guy is full 💩. Bitcon =blockchain Blockchain = freeware Freeware = no barriers to entry No barriers to entry = no value

There is still true capitalism occurring thanks to bitcoin. 1 coin will be over $1 million by 2030, probably far more.

I don’t know why we don’t give more money to people. Imagine what $100k to every persons would do. There is no consequence contrary to what we’ve been told. The world still supports us and let’s take advantage while we can. They owe us after all we’ve done for them.

You are confusing inflation with short selling

Never a wasted opportunity to allege that cryptocurrency is a "one off" is there? Go ahead and continue investing in zombie companies then, good luck.

This guy Hasn't touched upon institutions very much, pretty shit analysis

First comment to say no shit Sherlock

Congratulate yourself for your growth. Positive reinforcement lets u keep going. You are getting better every day.

“Listen to my accent not what I’m saying... because I refuse to mention the disaster of shutting down the world over a virus that no one can hide from..”

Role of State in china has gone down..... Meanwhile Jackma missin...

MINDMED!!!!!