Fight of the Living Dead

posted by
September 15, 2011
The American Prospect    
Posted in PND Commentary

"Japan’s 'lost decade' of the 1990s gave the world 'zombie banks.' A zombie bank is, in effect, bankrupt. It’s made loans to companies that aren’t going to be able to pay them back, and the total value of those bad loans exceeds its equity. ... when the government doesn’t want to let the bank fail but also doesn’t want to pay to bail it out, it simply agrees to pretend that the bank is still sound." (09/15/11)  

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