Next Recession

It’s time for the next recession, and this is what will cause it:

Zombie companies, or corporate underachievers overdosed on cheap credit, are proliferating across the globe, threatening to derail the weakening world economy. Worldwide, the number of companies that do not generate sufficient profits to cover their interest payments and survive only by repeatedly refinancing their loans has doubled in a decade to constitute a fifth of all corporations, Nikkei research shows. Readily available low-cost debt financing helps keep highly indebted, poor-performing companies alive that would have otherwise gone under.

The industries that are particularly affected by this bubble are medical, pharmaceutical, nonferrous metals, energy and information technology.

Europe has by far the largest number of these zombies. US comes second.

Once the bubble pops and these fake companies begin massively to default on their payments, there won’t be anything to stop the next recession crashing down on us.

Now is a really good time to start being extremely cautious with your personal finances because nobody will be bailing me and you out once the crash comes. Do you have a financial cushion that will protect you? Because the economic upturn is nearing its end.

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