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Zombies: Ranks of world's most debt-hobbled companies are soaring - and not all will survive

12 Comments
By BERNARD CONDON

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Companies had a chance to cut their debt after then-President Donald Trump’s 2017 tax overhaul slashed corporate rates and allowed repatriation of profits overseas. But most of the windfall was spent on buybacks instead.

The Trump tax cuts were pure corporate welfare, socialism for the rich.

If he is back in power , he will double down to pay back the corporate money backing him.

https://www.nydailynews.com/2020/10/27/his-corporate-welfare-trump-has-shoveled-cash-to-massive-companies/

1 ( +6 / -5 )

The Trump tax cuts were pure corporate welfare, socialism for the rich. 

Not entirely, the cuts weren’t the problem, they were exactly what the corporations needed, the problem was with the greedy execs that put self-interests and profit over business, employees, customers and the community in general, thousands more did not take that route, so it depends on who we are exactly talking about. Liberals want to look at the black dot in the center of the white paper and focus on that and not the entire canvas.

If he is back in power , he will double down to pay back the corporate money backing him.

As he should, because Biden’s policies are making stores close up faster, giving huge wages to people working minimum jobs will bankrupt companies inconvenience communities and create more unemployment at the very basic level, these jobs were not meant to be career jobs, but temporary jobs to buildup skills and strong worth ethics.

-9 ( +2 / -11 )

The Trump tax cuts were pure corporate welfare, socialism for the rich.

Well, then be rich.

Easy.

-7 ( +3 / -10 )

"In Britain, the Glazer family that owns much of the Premier League’s Manchester United soccer franchise loaded up the company with debt in 2005, then got the team to borrow hundreds of millions a few years later. At the same time, the family had the team pay dividends to shareholders, including $165 million to the Glazers themselves, while its stadium, the Old Trafford, fell into disrepair."

The Man U decline is shocking to its fans and supporters.

The worst type of American owners of a Premier League club, similar to the previous Liverpool FC American businessmen Tom Hicks and George Gillett, who plunged the club into debt.

I guess in the sphere of capitalism bad companies fold and go under but it's the employees and stockholders who lose out.

5 ( +5 / -0 )

Well, then be rich.

I assume then that you are very rich.

4 ( +8 / -4 )

American Premier League owners like the Glazers and Hicks and George should not be allowed to own them.

2 ( +2 / -0 )

“They’ve created a tinderbox,” said Spitznagel, founder of Universa Investments. “Any wildfire now threatens the entire ecosystem.”

Well, will the regular citizen, who didn't create the problems, be called upon yet again to save the dysfunctional system? Of course. That's how the system works. But some dummies still believe it is self-regulating.

the problem was with the greedy execs that put self-interests and profit over business, employees, customers and the community in general,

That's how the system is supposed to work. Corporations, “…have no capacity, and their executives no authority, to act out of a genuine sense of responsibility to society, to avoid causing harm to people and the environment, or to work to advance the public good in ways that are unrelated to their own self-interest.”

Bakan, Joel (2004) The Corporation: the pathological pursuit of profit and power, New York: Free Press.

1 ( +3 / -2 )

bass4funkToday 08:10 am JST

As he should, because Biden’s policies are making stores close up faster, giving huge wages to people working minimum jobs will bankrupt companies inconvenience communities and create more unemployment at the very basic level, these jobs were not meant to be career jobs, but temporary jobs to buildup skills and strong worth ethics.

The federal minimum wage was last raised in 2009, so pretty big pinocchio there. I prefer my waiters to be present and happy and paying them a good wage ensures that. It also ensures that they aren't using safety net programs which are not going anywhere.

1 ( +1 / -0 )

haha. the majority of jobs in the usa are not meant to be career jobs. that’s a heck of a talking point.

0 ( +1 / -1 )

If even a small percentage of a company's employees are using public assistance, that is the definition of a zombie company. They need to be forced to raise their wages and see how they do after that.

1 ( +1 / -0 )

They are called zombies, companies so laden with debt that they are just stumbling by on the brink of survival, barely able to pay even the interest on their loans and often just a bad business hit away from dying off for good.

I think you'll find this applies to entire countries as well. The capitalist system is rotten to the core.

-1 ( +0 / -1 )

I think you'll find this applies to entire countries as well. The capitalist system is rotten to the core.

In some places. In socialist democracies however, rampant capitalism is tempered much more than in other countries where it is left to run rampant, and these countries gain the benefits of capitalism, while also having a social safety net, and keeping the rich from taking everything.

-1 ( +0 / -1 )

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