David Kirkpatrick

August 21, 2009

US companies are cash-rich

Filed under: Business — Tags: , , , , , — David Kirkpatrick @ 3:01 pm

And all this mattress stuffing isn’t doing much for the economy. The free market needs liquidity or things tend to stagnate.

From the link:

American companies are now sitting on record mountains of cash in an indication of deep worries about the economy’s future.Even though analysts forecast a return to U.S. economic growth by the third quarter, companies have yet to show any major signs of rehiring or spending.

And with consumers also hoarding cash at near record levels, a cautious stance by companies could add to worries about the sustainability of an economic recovery.

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