Doomscroll News

Tag: Debt

  • How to Spot a Zombie Company

    Forget the daily stock market noise. The real story is in the rot that hollows out a company from the inside, long before the public ever knows. Today, we’re talking about the mechanics of corporate failure. We’ll explore how titans like Starbucks and Lowe’s can operate with negative shareholder equity, why the most respected corporate laws in Delaware might actually encourage risky behavior, and how a 6,000-to-1 pay gap is more than just a headline—it’s a symptom of a system on the verge of collapse.

    Doomscroll Dispatch
    Doomscroll Dispatch
    How to Spot a Zombie Company
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  • Five Hidden Red Flags That Signal a Corporate Collapse

    The landscape of American commerce is littered with the ghosts of giants that once seemed invincible. Names like Circuit City evoke a recent memory of sprawling stores that went from market leaders to liquidation sales with startling speed. While it’s easy to see the collapse in hindsight, the more pressing question is whether the warning signs were visible all along.

    The answer is often a resounding yes, but the most potent signals of deep corporate trouble are rarely found in splashy headlines. Instead, they are hidden in a modern playbook for corporate decay: one that prioritizes aggressive financial engineering over operational health, enabled by respected legal structures and rewarded by profoundly misaligned executive incentives. This article uncovers five of these overlooked red flags—buried in SEC filings, academic research, and strategic blunders—that can signal a company is on a dangerously unsustainable path.

    1. When a Company’s Value Dips Below Zero

    One of the most alarming yet surprisingly common signals is Negative Shareholders’ Equity (NSE). In simple terms, this occurs when a company’s total liabilities—everything it owes—exceed its total assets, or everything it owns. It is a classic sign of severe financial distress, indicating that if the company liquidated all its assets to pay its debts, shareholders would be left with nothing.

    While one might assume this condition is reserved for obscure, failing businesses, a surprising number of household names operate with negative shareholder equity. Recent financial analyses reveal this list includes retailers like Lowe’s, coffee behemoth Starbucks, tech giant HP Inc., and personal care brand Bath & Body Works. This trend is particularly acute in certain industries. The “Home Improvement Retail” sector, for instance, which includes giants like Lowe’s, carries a staggering average Debt-to-Equity ratio of 44.17, showcasing an industry-wide addiction to the kind of debt-fueled share buybacks that hollow out a company’s financial foundation.

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  • The “Good” Buyback vs. the “Bad” Buyback

    Imagine a successful company like Apple. It generates enormous amounts of free cash flow, far more than it needs to run its business and invest in future growth. It uses this excess profit to buy back its own shares. This reduces the number of shares outstanding, which increases Earnings Per Share (EPS) and the ownership stake of the remaining shareholders. In this scenario, shareholder equity remains robust and positive because it is constantly being replenished by massive retained earnings.

    Now, consider a company with stagnant growth, inconsistent profits, or a struggling business model. To make its financial ratios look better and to prop up its stock price, the management might decide to buy back shares. But where does the money come from if not from excess profits? It often comes from taking on new debt or draining cash reserves that are needed for operations and innovation.

    This is the “bad” buyback. The company isn’t creating new value; it’s using leverage to manipulate its financial appearance. On the balance sheet (Assets = Liabilities + Equity), liabilities (debt) go up, and assets (cash) go down to pay for the shares. This combination aggressively eats away at the equity portion of the equation. When a company buys back so many shares that the cost exceeds its retained earnings and initial capital, shareholder equity flips to negative. It means the company’s liabilities now exceed its assets, a state of technical insolvency.

    Even more concerning, is when a company does both buybacks and dilutions (selling new shares). This is a major red flag. It’s like a frantic attempt to tread water: they sell new shares to raise needed cash (diluting your ownership), and then use cash (often borrowed) to buy back other shares to support the stock price. This financial churn suggests a lack of a coherent long-term strategy, prioritizing short-term stock performance over fundamental business health.

  • A New American Platform

    A New American Platform

    After an 𝕏 history filled with plenty of bogus ideas, my stances have obviously evolved, so consider the following my most current platform.

    Don’t reform the failed systems of the past or indulge the inaction of extreme libertarianism.

    Platform Overview

    Signature National Initiatives

    • Launch a 21st Century Manhattan Project: Secure absolute American technological, energy, and military supremacy. Focus on topics such as: nuclear engineering, the development of sovereign AI, and the construction of a ‘Golden Dome’ missile shield. Absorb and accelerate other critical advanced projects: like directed energy, hypersonics, and cybernetics. Participation in this project, at all levels, will be restricted exclusively to U.S. citizens.
    • The Phoenix Mandate: A plan to eliminate the national debt by revolutionizing the U.S. healthcare system through personal health tech, ending the nursing home model, funding “moonshot” cures via a public-private “Titan Mandate”, issuing a “Stargate Ultimatum” for AI to slash costs, and enforcing a “Patriot Price Mandate” on pharmaceuticals.

    Taxation, Revenue & An American Dividend

    • Abolition of Income Taxes: Immediately abolish all Federal personal and corporate income taxes. The IRS’s role as a tax collection agency should be eliminated.
    • Strategic Capital Gains Tax: A modest capital gains tax will be retained for the sole purpose of preventing rampant short-term speculation, designed to heavily incentivize mid-to-long-term investment.
    • An American Dividend (Hybrid System): A hybrid system should be implemented immediately. A significant portion of all tariff revenue should be used to aggressively pay down the national debt, while the remainder should be returned directly to The People as an immediate “Freedom Dividend.”
    • Full Dividend Potential: Once the debt is paid, the full revenue from the baseline 15% tariff will be returned directly to The People, potentially translating to more than $1,700 per U.S. citizen, per year.
    • Mandatory Cash Option: The United States cannot become a cashless society. Physical cash must always be preserved as a valid form of payment.

    Economic & Financial Policy

    • Multi-Level Strategic Tariffs: Implement a 15% baseline tariff. Additionally, POTUS must have full discretionary authority to impose massive strategic tariffs (e.g., 50%, 100%, 400%, 1000%) on critical sectors like microchips.
    • Prohibit Peacetime Cryptocurrency: Cryptocurrency is a national security threat and its use by the general public should be prohibited.
    • The Wartime Digital Asset Act: Treat the underlying crypto technology (blockchain, ASICs) as a strategic military asset to be deployed only in times of declared war.
    • Prohibit Hostile Financial Systems: Expose and ban the integration of Sharia-compliant finance into the U.S. economy.
    • Reject Corporate Bailouts: The $10 billion investment in Intel is a bailout.
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  • Ford’s New Slogan: “Built Ford Tough… With a Little Help from Our Comrades”

    Is that the sound of rattling bolts on a new F-150 or the clinking of vodka glasses in a celebratory toast? Rumor has it, Dearborn might be getting a new sister city: Moscow. With Ford’s stock taking a beating and debt levels reaching for the stratosphere, analysts are wondering where the company will find its next big bailout. After all, when your electric vehicle ambitions are already entangled with Chinese battery technology, what’s a little more foreign investment between adversaries?

    While European allies seem to be keeping their checkbooks closed, don’t be surprised if the next Ford press conference is catered with borscht and the company unveils a new “From Russia With Love” financing plan. Forget diluting shares; the real power move is diluting your national allegiance. The new Ford insignia might just be a hammer and sickle superimposed over the blue oval. Will the stock go up? Who knows. But one thing’s for sure: the cup holders in the next-generation Mustang better be big enough to hold a bottle of Stolichnaya. After all, with over $160 billion in debt, you’ve got to be damn creative to keep the assembly line running. As for their EV battery “lies,” it turns out the secret ingredient might not have been lithium, but a healthy dose of geopolitical pragmatism. So, get ready for the all-new Ford Pravda, coming soon to a dealership near you. Just don’t ask about the trunk space; it’s probably full of rubles.

  • The Art of the Missile

    I have a hunch about something I call ‘the art of the missile,’ and it makes me question if tariffs alone are a durable solution to our debt. It’s a feeling that we are underestimating how fragile our entire economic system is in the face of modern warfare tactics.

    My concern is that the strength of tariffs depends entirely on a functioning economy with intact infrastructure like ports, power grids, and manufacturing hubs. What happens to the power of those tariffs when the Axis of Evil decides to use a few well placed Zircon cruise missiles or a swarm of advanced drones? They have these weapons stockpiled and ready to mobilize. If Putin or another adversary starts shooting, not necessarily at people, but at our critical economic infrastructure, the entire tariff structure could collapse overnight. Your solution to the debt would be gone in an instant.

    Beyond that direct military threat, you cannot deny there seems to be a significant media cover up suggesting things are not what they seem on the world stage. How do we explain the reports where Ukrainians and their helpers conveniently evacuate a key area right before it gets hit, or when the Russians do the same thing before a major strike on one of their important targets? It points to a level of coordination or information control hidden from the public. It all feels managed, especially when you see players like JP Morgan lining up with Biden to talk about rebuilding everything afterward. It suggests the conflict itself is just a phase in a larger economic plan for the global elite.

    This is why when people bring up other solutions, like AI and technological dominance saving us, that argument feels way too pie in the sky for me. So much of that future hinges on one single company in one of the most volatile places on earth, TSMC in Taiwan. That one company is both the crown jewel of the modern world and its most glaring Achilles’ heel. Any project or economic model that relies so heavily on that single point of failure is not a serious plan, it is a fantasy.

  • Trump’s Intel Bailout: An “America First” Scam

    The recent $10 billion government investment in Intel is a sham disguised as an “America First” initiative. In reality, it’s a bailout to service the company’s massive debt, which was approximately $50.15 billion as of March 2025. This raises the question: is President Trump getting some kind of kickback for orchestrating this deal? The claim of putting America first is further undermined by Intel’s continued reliance on Taiwan’s TSMC, a move that prioritizes Taiwan and raises concerns about the prominence of the English language in our own tech sector.

    It’s laughable that a company like Intel, supposedly at the forefront of American innovation, has a market value of around $107 billion, while an entertainment app like TikTok’s parent company, ByteDance, is valued at over $330 billion. This entire situation smacks of corruption, especially since they refuse to release the Oval Office tapes from the meeting between Trump and Intel’s CEO. With the administration also planning to reinterpret treaties to sell heavy attack drones, it’s only a matter of time before Intel’s overseas supply chains face retaliatory attacks. This isn’t a serious investment; it’s a high-risk gamble with taxpayer money that seems destined to fail.

    https://wccftech.com/intel-will-use-tsmc-forever-says-cfo-as-shares-rise-after-he-confirms-plan-to-use-us-funding-to-pay-back-debt

    https://archive.is/RTObf