"Canadian Who Forecast Slump Makes Bold Bet On the US"
Canadian Who Forecast Slump Makes Bold Bet On the US
by Kevin Carmichael at the Globe & Mail
http://www.theglobeandmail.com/report-on-business/economy/economy-lab/canadian-who-forecast-slump-makes-bold-bet-on-the-us/article4741967/?cmpid=rss1
"SNIP...................................................
The U.S. housing market is coming back to life, and rising home prices should underpin stronger household spending. (Personal consumption jumped 0.8 per cent in September, according to U.S. government figures released Monday, accelerating from gains of 0.5 per cent and 0.4 per cent in August and July, respectively.)
Mr. Hall observes that U.S. industrial production is at its peak from the previous business cycle, and he predicts companies will have to add to their productive capacity to keep up with demand.
That suggests the mountain of cash corporations are currently sitting on is just about to be unleashed into the economy, EDC says in its report. Mr. Hall estimates U.S. companies are sitting on almost $6-trillion, a number he derives from deposits at banks, cash balances of non-financial corporations and trade receivables.
Thats an amount equivalent to 36 per cent of U.S. GDP. Executives need only deploy a fraction of their reserves to jolt the U.S. economy out of its current malaise.
..................................................SNIP"
(so the GOP got the corporations to sit on almost $6 Trillion to make Obama look bad - shame one them).