This chaos is the reason corporations are hoarding cash.

[dkf]

They were left out on a limb the last time. They seem to have learned some things from that experience.

[villager]

1. Thank Christ someone is here to defend the corporations! (Uh, never mind they create the "chaos")

...what with their election-buying, economy-hacking, et al....

[socialist_n_TN]

4. That was good for a LOL

:rofl:

[flamingdem]

24. I agree VIllager, economy-hacking is the word nt

[indurancevile]

2. they were hoarding cash long before this.

[dkf]

5. To be ready if this sort of thing happened again.

Did you think we had fixed the problems we ran into the first time?

[indurancevile]

13. what is 'this sort of thing"?

[amborin]

3. unbelievable! corporations' wage slashing and layoffs led to "this chaos"

[Skink]

6. Didn't they used to hide their cash.

offsshore and wait around for a tax holiday to bring it back in.

[girl gone mad]

7. "left out on a limb"?

Go buy those German stocks you were hyping last week. There's a fire sale today.

[dkf]

10. Out on a limb in getting access to credit.

That is what happened the last time. If you have cash reserves, you can survive without borrowing.

Geez.

[Kennah]

22. You sound like an infomercial

[jpgray]

8. You are too precious

$2 trillion banks are avoiding great investments in this country because of Standard & Poor's and the Tea Party. You could write for the Wall Street Journal's editorial board.

[Rex]

9. Chaos caused the mega wealthy to horde cash...okay

who caused the chaos?

[shraby]

11. Corporations hoarding cash is the reason for the chaos.

[Ruby the Liberal]

18. Sad that needed to be said.

[eridani]

12. Bullshit. They're hoarding cash because there is no point in investing to produce

--goods for people who can't afford to buy them. That's the exact same reason that the winner of a Monopoly game hoards cash. That can only be rectified by taking the cash from the winner and redistributing it.

[RagAss]

14. They haven't seen fucking chaos yet !

[The Magistrate]

15. Back To Front As Usual, Ma'am: their Hoarding Cash is the Cause Of the Chaos

[MichiganVote]

17. +1

[dkf]

19. When you experience a situation where you realized access to cash was key...

Do you go back to old habits, knowing it could happen again?

Individuals started saving, states were paying down debt. Anyone who could improve their cash position did so. Heck I did so. Didn't you?

[nadinbrzezinski]

23. These are not individuals

what makes their situation better is demand. The only way to create demand is to hire employees who will start buying crap. PERIOD. This is counter intuitive. It makes things works. It is called the paradox of thrift. I, as an individual, am saving... but I am not helping.

Corporations have sat on that cash IN THE US, fired employees in THE US. and HIRED cheap labor abroad. Now we have a story from the La TImes wehre they are giving up on us and moving abroad, This is not hoarding cash.

http://www.latimes.com/business/la-fi-consumers-overseas-20110808,0,6193915,full.story

This is the kind of behavior for which they should be investigated.

[dkf]

28. Companies don't hire people for the sake of stimulating the economy.

Even governments can't do so now.

[nadinbrzezinski]

30. If you fire employees here

and hire them abroad, I am sorry, but yes they are doing it.

And hoarding cash is what they are doing for POLITICAL reasons, not economic. Proof is in the pudding. They are hiring ABROAD and moving ABROAD.

[The Magistrate]

34. Governments Certainly Could, Ma'am

They simply do not, because of the influence of right-wingers who want to see workers impoverished, and because they lack the will to deal properly with the criminal frauds of the banking amd business communities.

[Rex]

25. But individuals don't make up but 2% of ownership.

They feed the economy by living as good consumer ratings. Cash will always be key to the working class. Saving money is not dumb, but hoarding money and hurting the welfare of the nation is legal, yet somewhat immoral and loathsome.

Paid off all my debts and that is golden to be debt free in this fucked up economy...like everyone else did last time. Stop spending.

[dkf]

32. Cash may also be key to businesses if credit locks up.

Would you rather your employer have hired as many people as possible leaving it in a possibly vulnerable position now? Or would you prefer that your firm be in a financially stable position where you can weather this?

So many companies overextend themselves. It does no favors to workers if their company puts itself in a bad situation.

[Rex]

38. That is true and it actually happened to a company I worked for

totally sad to watch it fall apart. :(

[The Magistrate]

27. The Hoarding, Ma'am, is a Political Action, A 'Capital Strike'

It is a deliberate attempt to reduce economic activity, inflicting hardship on working people and governments, in order to wring certain concessions regarding wages and fiscal policy from, society and government. All economic reasons advanced are mere obfuscation for this fact.

[nadinbrzezinski]

31. In the US... I just posted the story

on them moving abroad

http://www.latimes.com/business/la-fi-consumers-overseas-20110808,0,6193915,full.story

This is proof in proverbial pudding.

[lib_wit_it]

39. Well said, Sir!

[ashling]

16. self fulfilling prophecy

nt

[aquart]

20. Bull cookies.

They pass it out to executives with a very free hand.

[Oasis_]

29. This is getting off track

Some attempt to pass it off as "greedy corporations hoarding wealth". The notion is completely divorced from reality.

What exists is an appreciable lack of consumer DEMAND. Corporations will spend, upgrade and hire when the demand exists to warrant it.

The credit crunch plus unemployment, along with a huge spike in commodity pricing has a huge negative impact on hiring and investment.

Want to remedy it? An infrastructure improvement program. It's messy, somewhat inefficient but it will free up TONS of capital as well as providing a huge surge in ultra-vital consumer spending--which represents 70% of our GDP.

[sabo_tabby]

37. Spoken like a true capitalist - nice job!

[DebJ]

40. You are right..it is not the greedy corporations, it is instead

the greedy SOBS that work for the corporations and are taking ever higher salaries, benefits, bonuses and perks, and doing so by suppressing wages of those who actually buy stuff. There is consumer demand, but it is pent up because their is no cash in consumers hands. Good Lord we need so many things in my house right now it is getting scary. The house itself is literally starting to fall apart. You think we are just holding back cash? What cash? Too painful to laugh at that absurdity.


They created this mess, and they did so because ultimately, it will enrich them, as it is doing now.
Everything is going according to plan.

[Amonester]

21. Oh, yeah, CA$H...

Maybe that's why gold & co is skyrocketing...

Ca$h can burn fast in a furnace...

[Rex]

26. We can print more, no problem the Jenusez told us so.

[CoffeeCat]

33. I agree that the elites are hoarding cash...

...because they know that the bottom will drop out.

They're saving for the rainy day...uh, I mean, monsoon that is coming.

[jwirr]

35. They have told us all along that they are afraid of the uncertain markets. nt

What they should have been afraid of is the rethug obstructionists whom many of them bankroll.

[sabo_tabby]

36. One word: NATIONALIZE/nt