Record unemployment, US non-financial companies hoarding $1 trillion in cash, 20 corps = 37% of it

[Hannah Bell]

U.S. Companies Hoarding Almost $1 Trillion Cash

FYI, that's equivalent to about 7% of US GNP, 7% of the entire US debt, or 1/2 of the entire Social Security Trust Fund.


U.S. companies are hoarding almost $1 trillion in cash, but are unlikely to spend on expanding their business and hiring new employees due to continuing uncertainty about the strength of the economy, Moody's Investors Service said on Tuesday.

As the economy stabilizes companies are also more likely to spend on share repurchases and mergers and acquisitions, Moody's added.

Non-financial U.S. companies are sitting on $943 billion of cash and short-term investments, as of mid-year 2010, compared with $775 billion at the end of 2008, Reuetrs said, citing Moody's. This would be enough to cover a year's worth of capital spending and dividends and still have $121 billion left over, it said.

Only 20 companies hold a large portion of corporate cash balances, with $346 billion on their balance sheets, or 37 percent of the total, Moody's said. Cisco Systems has the largest cash balance, at $39.86 billion, while Microsoft is second with $36.79 billion, Moody's said. Google has the third-largest balance with $30.06 billion, followed by Oracle with $23.64 billion and Ford Motor at $21.89 billion.

http://finance.yahoo.com/news/US-Companies-Hoarding-Almost-nytimes-2141446680.html?x=0

[sakabatou]

1. Motherfuckers...

[spinbaby]

2. Obviously they're insufficiently taxed

And I notice the unrec troll has gotten to this already.

[maryf]

3. Saving for a rainy day...

:grr: K&R

[quaker bill]

4. proves the point

that companies do not create jobs because they have extra money laying around. No one hires people that they do not need simply because they have the money to pay them. They hire folks when they need them to build product or deliver services, and will borrow the money to do it, if necessary. Reality is not "supply side".

[FreakinDJ]

5. If RATpubliCONs come to power 100% of it goes to CHINA

Just like when Bushit was in office in 2003 - 2004, all the investment money went to China

Welcome to a 3rd world America

[Scuba]

6. So let's give 'em a big tax break?? n/t

[malaise]

7. Given the number of persons laid off by corporations

as soon as Obama was sworn in, my question remains whether that was done to sabotage the administration from day one.
Afterall their owned representatives were shouting along with that fat fuck of a druggist that they wanted him to fail.

[glitch]

10. For me there is no question.

Appeasement could never have been a solution to the danger they clearly present.

[Starry Messenger]

8. k & r

[jotsy]

9. Earnest Istook recently told Ed Schultz, with a straight face no less.

That all the new rules make corporations nervous, and that's why they're not spending.

My interpretation? "If we're going to be made to play fair, we won't be playing."

Another paper brick in the flim flam wall.