GoldSilver (w/ Mike Maloney): Revenge Of The Zombie Companies - Mike Maloney's Early Warning Presentation

  • Thursday, 19 July 2018 09:19
Click here for more: https://goldsilver.com/blog/world-premiere-mike-maloneys-early-warning/?utm_source=yt&utm_medium=ad&utm_campaign=zombie1 The S&P 1,500 is a very broad index. In fact, its constituent companies represent over 90% of the entire market cap of all US stocks. And, a frighteningly increasing number of them are the walking dead. By design, the companies that index does not include are the smallest, riskiest, most-likely-to-fail public companies. So you’d think the ones left would predict a fairly robust corporate financial profile. These are, after all, the 1,500 largest public companies in America. But imagine if, on a cross-country road trip, you pulled off the interstate and found yourself in a small town of just 1,500 residents. What would you say the prospects for that town would be if 225 (and rising) of them were the walking dead? Zombies who would collapse under their own weight if they weren’t kept barely shambling along on a steady diet of government-subsidized brains? While just a far-fetched tall tale for a town, in a rotting nutshell, it is very much the reality for the US stock market today. Believe it or not, 225+ of the largest and supposedly most successful companies are so operationally sick, so incapable of supporting themselves in any way, that they’d be bankrupt in a heartbeat without the zero interest rate policy (‘ZIRP’) loans that amount to a handout from the Fed. Without their corporate-welfare zombie brains. As Mike Maloney explains in his most recent sweeping economic update, these companies are hollow shells that only appear healthy from a great distance. Their debt burdens, bloated over a decade of borrow-‘til-you-bust, ultra-low-interest-rate policy, are so large, and their ability to generate cash flow is so poor, they can’t afford interest-only payments on that debt. Forget paying back any of the principal. How do you view a household that is so indebted on credit cards, it can’t afford to pay just the monthly interest on those credit card bills? Dead broke. Insolvent. Hopelessly bankrupt. Just like 15% of the largest companies in America. And this at a time when the Fed funds rate is still at a historically low 2.0%! Now interest rates are rising. As alarming as this 15% number is, it’s only going to rise from here. Until the cumulative dead weight of all these zombies collapses the economy itself. Just like it has before: Just prior to the dotcom collapse of 2000 and the hundreds of bankruptcies that followed, 9% of the S&P 1,500 were zombie companies. Just prior to the 2008 financial crisis and the hundreds of bankruptcies that followed, 12% of the S&P 1,500 were zombie companies. Right now, 15% of the S&P 1,500 are zombie companies. This is just one ghoulish detail Mike Maloney has exhaustively researched, analyzed, and strategized for in his new landmark Early Warning presentation. Find out how you can not only survive but profit from the coming, economy-wide reset. If you enjoyed watching this video, be sure to pick up a free copy of Mike's bestselling book, Guide to Investing in Gold & Silver: https://goldsilver.com/buy-online/investing-in-gold-and-silver/ (Want to contribute closed captions in your language for our videos? Visit this link: http://www.youtube.com/timedtext_cs_panel?tab=2&c=UCThv5tYUVaG4ZPA3p6EXZbQ)

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