Finance and Economics
March 22, 2021 · By Sagar Jeevan

Zombie Companies Draw First Blood, Will Continue To Haunt The U.S. Economy

This is adapted from a longer version of an article published earlier. Please read at oureconomist.com. The U.S. Federal Reserve with its creative destruction tools has successfully managed to keep credit flowing into the U.S. economy helping banks and businesses to stay afloat. However, large scale usage of these tools has raised questions on its repercussions. Subsiding financially unhealthy businesses has resulted in a sharp increase in the number of zombie companies which would otherwise be bankrupt. With the Fed having no plans of increasing interest rates anytime soon, the zombie companies will continue to feed on the Fed’s near-free credit for years to come. The unprecedented hi...

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Finance and Economics
March 19, 2021 · By Sagar Jeevan

Is Depression The Only Viable Way Out Of The Impending Recession?

This is adapted from a longer version of an article published earlier. Please read at oureconomist.com. The outcry of the Great Recession was still being heard even after a decade. The three phases of Quantitative Easing performed to help recuperate the United State’s economy, overinflated the debt owed by the U.S government. Worse, the underlying financial structural problems were never addressed, which made a bigger crisis inevitable. The shock from COVID - 19 has caused the U.S economy to nosedive at an alarming rate and levels unseen from the Great Recession and even the Great Depression. The severity and uncertainty of the crisis amid a precarious economic bubble may soon prove to...

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Finance and Economics
March 18, 2021 · By Sagar Jeevan

Enduring A Bear Market

This is adapted from a longer version of an article published earlier. Please read at oureconomist.com. Economic boom and downturn are natural to any country’s economic cycle. An economic boom is a period where a country’s economic indicators such as Gross Domestic Product (GDP), credit rating, employment rate, inflation rate, market indexes, and asset prices experience an expansion. Economy and stock market are not one but are closely related to each other. A stock market is volatile which depends on the emotions of investors. High volatility in a stock market may not necessarily mean a disruptive economy but mostly the two end up in the same direction in the long term. To put thi...

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