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You must be thinking of last summer, you know, after he signed his stimulus bill and 0bama promised it would "jolt the economy" and "jump-start the economy" with all those "shovel ready jobs".
"Businesses are sitting on about $2 trillion in cash reserves."
The private sector looks at 0bama and the clowns in control of congress as nothing more then spread-the-wealth cleptocrats. They are hiding as much of their profits from the greedy clutches of government as they can, and doing their best to ride out the 0bama storm, hoping against "hope" for change.
"Businesses are sitting on about $2 trillion in cash reserves."
How do they reconcile that with this?
Quote:
You could hear this great news pretty much anywhere -- maybe from Bloomberg, which this spring hailed the "surprising strength" of corporate balance sheets. Or perhaps in the Washington Post, where Fareed Zakaria reported that top companies "have accumulated an astonishing $1.8 trillion of cash," leaving them in the best shape, by some measures, "in almost half a century."
Or you heard it from Dallas Federal Reserve President Richard Fisher, who recently said companies were "hoarding cash" but were afraid to start investing. Or on CNBC, where experts have been debating what these corporations are going to do with all their surplus loot. Will they raise dividends? Buy back shares? Launch a new wave of mergers and acquisitions?
It all sounds wonderful for investors and the U.S. economy. There's just one problem: It's a crock.
This July resembled the previous July in several key respects. What does this suggest for the markets for the rest of 2010?
American companies are not in robust financial shape. Federal Reserve data show that their debts have been rising, not falling. By some measures, they are now more leveraged than at any time since the Great Depression.
You'd think someone might have noticed something amiss. After all, we were simultaneously being told that companies (a) had more money than they know what to do with; (b) had even more money coming in due to a surge in profits; yet (c) they have been out in the bond market borrowing as fast as they can.
Does that sound a little odd to you?
...According to the Federal Reserve, nonfinancial firms borrowed another $289 billion in the first quarter, taking their total domestic debts to $7.2 trillion, the highest level ever.
...Clearly it's bad news for jobs and the economy.
But why is this line being spun about healthy balance sheets? For the same reason we're told other lies, myths and half-truths: Too many people have a vested interest in spinning, and too few have an interest in the actual picture.
I have no proof they are sitting on $2 trillion, I only quoted that from the link, because it makes sense that businesses will sit on money, not hire, not expand and not risk any capital investments.
The current president's policies and the actions by the congress have destabilized the entire private economy. threats of new taxes, new regulations and mandates that have yet to be written, but authorized under the Heath Care and Financial Reform bills 0bama signed into law, and the EPA threatening to regulate CO2 and the Waxman-Markey energy bill that will dramatically raise costs on all forms of energy, and just needs to pass thru the senate to become law.
I have no proof they are sitting on $2 trillion, I only quoted that from the link, because it makes sense that businesses will sit on money, not hire, not expand and not risk any capital investments.
The current president's policies and the actions by the congress have destabilized the entire private economy. threats of new taxes, new regulations and mandates that have yet to be written, but authorized under the Heath Care and Financial Reform bills 0bama signed into law, and the EPA threatening to regulate CO2 and the Waxman-Markey energy bill that will dramatically raise costs on all forms of energy, and just needs to pass thru the senate to become law.
I agree that makes sense.
I'm just questioning where they're getting the info that corporations are sitting on $2 trillion in wealth. The Federal Reserve lists them as being $7.1 trillion in debt, the largest amount since the Great Depression.
Both sides have a reason to play the scam...
Quote:
You can also blame our partisan age too. Right now, people on the right have a vested interest in claiming businesses are in healthy shape. That makes the saintly private sector look good, and demonizes President Barack Obama and Big Government for scaring away investment. Vote Republican! Meanwhile, people on the left have an interest in making businesses sound really healthy too: If greedy companies are hoarding cash instead of hiring people, they can cry "Shame on them! Vote Democratic!"
...When it comes to the economy, let's just hope the public is too hopped up on painkillers and antidepressants to notice. If they knew what was really going on, there'd be trouble.
...and both sides seem to be withholding the truth of how bad things really are from the American people.
Recovery summer? lol... That'll be a good one on the 2012 campaign trail.
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