Corporate America's cash pile has hit its highest level in half a century (WSJ)

[somone]

http://online.wsj.com/article/SB10001424052748703766704576009501161973480.html

Companies Cling to Cash
By JUSTIN LAHART

Corporate America's cash pile has hit its highest level in half a century.

Rather than pouring their money into building plants or hiring workers, nonfinancial companies in the U.S. were sitting on $1.93 trillion in cash and other liquid assets at the end of September, up from $1.8 trillion at the end of June, the Federal Reserve said Thursday. Cash accounted for 7.4% of the companies' total assets—the largest share since 1959...

The cash pooling up at companies has the potential to help the economy grow more vigorously and bring unemployment lower—if they start spending it on new plants, equipment and employees.

[Deep13]

1. marking for future reference nt

[Enrique]

2. not enough!

more more more!

[aquart]

3. How about spend it or lose it?

Contribute in creating jobs and industry OR JUST PAY TAX.

Call it the Patriot's Money Bill.

[LiberalArkie]

11. No, it will be used for mergers so that more people can loose their jobs.

[Newest Reality]

4. Another Sign of VIctory!

I want to be one of the first to congratulate our Overlords, (Owners behind the platinum, corporate curtain) on their well-deserved, just and honorable campaign for victory in the long war.

We await the coming terms of our surrender with a sense of gratitude and awe at such an amazing display of power, courage and wealth, while realizing our need to better serve the interests that are clearly superior to our ignorance and inferiority. We, The Unwashed Masses of useless eaters, bow in reverence and beg forgiveness for any inconvenience or interference we may have caused or facilitated in this long, arduous process.

Congratulations! You're worth it!

[robinlynne]

5. OR TAXES!!! Then we can use that moeny to feed the poor, and create govt jobs.

and maybe even housing and healthcare?

[robinlynne]

6. This is actually the most important fact in the tax debate. And never mentioned.

tax cuts for the rich do one thing: pile up more money in their bank accounts. nothing else.

[Name removed]

13. Deleted message

Message removed by moderator. Click here to review the message board rules.

[robinlynne]

17. explain the thing about treasury bills if you have the time. (feeling stupid)

[Duppers]

18. omg, Robin. You need not feel stupid. It's me that's stooopid!

Or rather my husband! I read him your OP and he gave me this info about "corporations" taking bailout and buying T-bills. (He's an intelligent guy--a theoretical physicist--and is usually very trust worthy.)

I tried to find a link for you and couldn't after many, many attempts. So, I asked him where he got that info. It turns out that he had accidentally conflated the terms corporations and financial institutions!! How the hell could anyone do that??!!

Well, he was in the middle of some work. I should never have tried to have a conversation w/him when he's working. Damn, I'm embarrassed and feel as if I've lost my credibility! I sincerely hope folks don't repeat what I said. I'll try to get a mod to take it down.

But my saying "amen" to your post and that your OP is a MOST important point in the current tax debate still holds.

Folks, what I posted above in post #13 is wrong. Don't repeat it.

[robinlynne]

19. not to worry. I didn't understand anyway. (smiling waving emoticon here)

[ck4829]

7. The poor don't have the option to use rain checks to pay for the rent and groceries

K&R

[Waiting For Everyman]

8. This is what breaks to the rich do - why do more of it?

A 90% top tax rate would start turning this around. Also a high tax on very quick financial trades. We have encourged these bad behaviors, we need to start DIScouraging them and only reward improvement.

For corporations for instance, we should give them a percentage cut (or write off) based on the percentage they increase their domestic workforce.

Fat chance Obama's future revamp of taxes will do incentiving well though. I'd bet the ranch it'll be more of the same.

[Cali_Democrat]

9. So they have cash to invest and hire workers, but refuse to use it

So putting even more money in their pockets through tax cuts will finally get them to invest and hire workers? :rofl:

[Initech]

10. If they're not gonna do anything with it, tax the fuck out of it.

If they use it to create jobs and build factories, then they can have tax breaks. How's that for a compromise?

[Cali_Democrat]

14. I like that idea!

:thumbsup:

[Democrats_win]

12. Where are the corporate raiders? They once took over companies with cash reserves.

Dring the 80s and 90s, these corporate raiders such as KKR, took over companies that refused to use assets to make money. In fact these raiders would sell off the assets. Just think, these companies could make a lot of money if they invested the cash rather than just sitting on it. Isn't that the point of those corporate raiders.

Of course, it could have to do with the fact that corporate raiders were all about going after the EMPLOYEES of these companies to bring down the wages of workers. Maybe that was the truth in the end.

[gratuitous]

15. When will they have enough to create some jobs?

Because I keep hearing how they need more money to create jobs, and the President seems determined to move heaven and earth so that they can have more money instead of paying taxes to maintain the country and its society. Is it possible to know ahead of time just how much more money corporate America needs so that it feels safe and secure enough to hire some folks?

[chill_wind]

16. K & R. n/t