GM is a major zombie

US government and banks have kept several companies alive or rather not alive but in a zombie state.
GM is a typical zombie firm.
Those who do not learn from the mistakes of history are doomed to
repeat them
Lack any incentive to produce results, innovate, to be efficient, to make the kinds of difficult changes that private firms operating in a competitive market must make to survive.
An institution which has a market worth of less than zero and is only able to operate with government guarantees; banks whose balance sheets are riddled with near-worthless investments.
It is a contributing factor to US weak economic performance is that US banks have continued to provide financial support for highly inefficient, debt-ridden companies, commonly referred to as "zombie" firms. Such poor banking practices in turn prevent more productive companies from gaining market share, strangling a potentially important source of productivity gains for the overall economy.
Productivity growth is low in industries reputed to have heavy concentrations of zombie firms. The reallocation of market share is going in the wrong direction in these industries, adding to already weak productivity performance. Financial support from US banks may have played a role in sustaining this perverse reallocation of market share.
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Bjrn Helgason wrote:

Sounds like the old USSR.
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