No business but no bankruptcies

Very, very strange times with capitalism all but suspended:

David Llewellyn-Smith
Latest posts by David Llewellyn-Smith (see all)


  1. Another unintended (and very unhealthy) consequence of bailouts and stimulus. This isn’t the answer — we need a reset right now. Clean and quick.

    Instead we get oodles of printed money and a zombie economy with zombie jobs.

      • Fear the walking dead. The stress I’m feeling in the public is amazing, people are snappy and irritable, lots of road rage, all pleasantness gone. Not the Straya I know and love!

    • Not just bailouts and stimulus. This govt has suspended the bankruptcy laws the outlaw insolvent trading.

      No bankruptcy laws = no bankruptcy… banks get to extend and pretend…

      • Yes, but then it becomes a snowball effect…. zombie business that is still trading which can’t pay all bills, will start defaulting, causing other zombies both up and down the chain to do the same.
        They’ll all take each other down at some stage.

    • Aussies Not Doing The Right Thing

      Exactly. New businesses will pop up when we get to the other side, they’ll have lower rents, owners will be less burdened by debt, they’ll buy a small, practical car through the company rather than a European SUV. It will all be more sustainable.

  2. Another great German word: “Insolvenzverschleppung” meaning the fraudulent delay of insolvency. CEOs used to go to jail for that but now it seems to be a sensible policy…strange times this…

  3. mean while Victorian MPs and senators required to quarantine before heading to Canberra

  4. Goldstandard1MEMBER


    Another head hangs lowly
    Equity is slowly taken
    And the insolvence, caused such silence
    How are we mistaken?
    But you see, it’s not me
    It’s the gov/real estate industry,
    In your head, in your head, businesses are failing
    With their grants, and their debt bombs
    And their debt bombs, and their bank runs
    In your head, in your head they are crying
    In the red, in the red,
    Zombie, zombie, zombie-ie-ie
    What’s in your head, in your head
    Zombie, zombie, zombie-ie-ie, oh
    Doh, doh, doh, doh

    • Dig through the ditches
      And burn through the witches
      I slam in the back of my

  5. So many short term distortions in the SME world … loan holidays, rent deferrals, insolvency hiatus, JobKeeper, Super rorts … cannot see how an orderly unwinding of all this is possible

    • Nor me, it’ll either all stay forever or all go ‘bang’ at once. Jury’s out on which.

    • Ulrike Meinhof

      I’ve never seen an orderly Reset.
      Resets are chaotic, they never the intended solution but rather all that is left after the “solutions” fail.
      I don’t have a problem with a reset, however if you think about where Australia needs to be in say 20 years it is impossible to imagine that we can get there if we first have to Reset. That said it is equally impossible to get there without a reset.