QuickTake: Response to Zombie Banks

The video discusses the concept of zombie banks, which are financial institutions burdened with bad debt, making them effectively insolvent. It highlights Europe's slow and fragmented approach to dealing with these banks since the financial crisis, with a focus on Italy's 2016 plan to address soured loans. The video also provides historical context, referencing the US Savings and Loan crisis and Japan's lost decade due to zombie banks. It contrasts the US's proactive measures during the financial crisis, including stress tests and asset sales, with Europe's ongoing struggles with over $1 trillion in bad loans.

What historical examples are given to illustrate the concept of zombie banks?

In what ways did the U.S. response to its financial crisis differ from that of Europe regarding zombie banks?