Zombie Firms of Finance Capitalism: Why They Are Dangerous

In its mindless drive to extract a profit, Yankee capitalists have abandoned the prospect of investing in infrastructure, goods and services. Instead, they have wandered into the bizarre world of finance capital with all its instruments, like derivatives and swap stock options. But the Dr. Frankensteins of finance capital have invented zombie companies that can’t cover the costs of servicing their debts, but are staying alive anyway. Their numbers have increased since the 1980s, but their biggest problem is that they have declining rates of profit.┬áThe talk begins at about the 24-minute point of this discussion.
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