The Financial Post ran an article called "Central Banks Warned Low Rates May Create 'Zombie Banks'".Awesome! The article reminded me of a day in first year contract law when a student asked if a contract can ever come back after it has been rescinded. The Professor responded sternly "no, there are no zombie contracts." This prompted one of my friends to say - in their best zombie voice, with arms outstretched - "you promised me braaaaaaaaaaaaaaaains." Hilarity ensued.
Wait, I just googled "zombie bank" in an effort to find a sweet image for this post and discovered "zombie bank" is actually a thing. Investopedia defines zombie bank as "a bank or financial institution with negative net worth. Although zombie banks typically have a net worth below zero, they continue to operate as a result of government backings or bailouts that allow these banks to meet debt obligations and avoid bankruptcy. Zombie banks often have a large amount of nonperforming assets on their balance sheets which make future earnings very unpredictable.
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