WEBVTT

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This is the chart of zombie companies. As we mentioned at the beginning of the video,

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a zombie company is a company that's not earning enough money or currency

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to service their debt, the interest on their debt. So they have to borrow just to pay their interest.

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They can't touch the principal. They're really hurting for cash flow.

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And so the number of zombie companies in the U.S. is skyrocketing. This is from October of

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this year. So certainly much more recent. 43% of the Russell 2000 companies are now

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unprofitable, the most since the COVID crisis. So they're talking about 43%. Oh my God.

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Yeah. Now they're talking about the Russell 2000, whereas what we were just looking at.

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So with more companies instead of 1500, the Russell 2000 incorporates the S&P 1500.

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Those companies are in here. This is 2000 of the publicly listed companies in the United States.

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Wow. Yeah. And so this is the chart here. The share of Russell 2000 companies with

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negative earnings continues to rise. And you can see where we're at here.

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The Russell 2000 must include some less profitable companies because this chart goes back to 1995.

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The other chart started in 2000. And this shows it up at about 16% or so in the year 2000,

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where our chart showed it at 3%, I believe. So it's including the extra 500 companies,

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our weak companies, compared to the first 1500 or 500 or whatever our last chart showed.

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So this isn't an increase from 20% to 45%. But still, this is incredibly alarming.