Companies sitting on hordes of cash.

[ivanm]

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http://www.thestreet.com/story/11270690/1/youre-being-stiffed-by-companies-hoarding-billions-of-dollars-for-no-reason.html




But the stated goal of Operation Twist is to push down interest rates to get companies to borrow and spend money.
 
Peter Cohan, a business consultant and professor of corporate strategy at Babson College in Wellesley, Mass., said one reason for the dearth of hiring and capital expenditures may be that U.S. manufacturers aren't expecting increasing demand for their products.
 
Their factories are running at 78% of capacity, versus the long-term average of 81%, he said, citing government data. "They are not going to add people until they run out of excess capacity."
 
Carfang said about 43% of the 250 U.S. firms his firm tracks, out of 400 worldwide, are increasing their capital expenditures, up from 33% last quarter, "so there is some loosening there." But most of that is going to maintenance of existing equipment and property, and only to the extent that it's absolutely necessary.
 
And companies are also more acquisitive, with 22% buying other firms, up from 19% in the second quarter and 17% in the first quarter, he said.
 
"Most of the other categories are pretty much unchanged," and that includes hiring, Carfang said.
 
"Our sense is that once cash gets to certain levels, some companies have a hard time defending not paying it out to shareholders," he said.
 
Another reason that companies are sitting on cash, Carfang said, is a little-known change by the Federal Deposit Insurance Corp. (FDIC) that offers unlimited insurance on non-interest bearing corporate bank deposits, a program that was launched at the end of 2008. "We believe that's attracted about $600 billion in corporate cash into the banking system over that time" to the present.
 
Given record-low interest rates, that's apparently an attractive option for companies worried about the future and no other alternatives.


The reason ......... is to avoid the outrageous tax bite of the US government.  If the government wasn't so greedy, they would bring these earnings back to the US to be distributed.

...
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There is more to the article but I will leave it to the sanctimonius mother fucking head pecker, aka pecker head, to look it up for himself. In words you can understand Malone, you are a prick with ears.

In the meantime I am crying all the way to the bank with capital gains, so eat your heart out you bigoted sob.

[Malone22]

IVANM

What was that blather all about..can't you even post on a message board....

[Malone22]

Even your edit didn't  fix it  ie "Comanies" 

[dagon]

I think this is FAS.  They are sitting on wads of cash and simply waiting until that friggin' socialist in the WH packs up and movesout.

ivan,  how about picking the salient points out and posting those.  this word dump is a bit much to wade through.

and no,  companies are not waiting til obama is out.  they've been hoarding cash for years which was pointed out in the word vomit that you cut and pasted if you read it;  which you didn't.

the new business model is to maximize holdings so that executives and shareholders are guaranteed a big payout.  if jobs are needed,  they are imported not grown domestically again for the sole purpose of executive and shareholder compensation.

remember the bush tax cuts?  did companies open up their pocketbooks when they got that windfall?  did they create new jobs?  no,  the exact opposite happened.  so you can put "obama" on auto-repeat all you want.  it doesn't address what has been going on with corporations for a few decades now.  but you're not about reality or solutions are you?  you're just willing to spend your remaining years bitching at the wind.

"get off my lawn you damn young whippersnappers"!

peace

[Malone22]

And what the hell does "I think this is FAS" mean  And also learn how to cut copy and space and edit

[ivanm]

IVANM

What was that blather all about..can't you even post on a message board....

It is a WIP so don't get your shorts in a tight.  

[dagon]

IVANM

What was that blather all about..can't you even post on a message board....

preach!

[Malone22]

preach!

Sorry Dagon but IVANM's regular posts are stupid enough... without all this blather..

[dagon]

It is a WIP so don't get your shorts in a tight.  

WIP=work in progress.

i'm just trying to help smtj out as it seems he has a hard time figured these things out.  

peace

[dagon]

Sorry Dagon but IVANM's regular posts are stupid enough... without all this blather..

oh, i totally agree.  he's got some competition now with this smtj (bad news) dude.

peace

[ivanm]

Even your edit didn't  fix it  ie "Comanies" 

Hang on you self righteous mother fucker. This next part is just for a nutjob like you.

[Malone22]

What does smtj  mean

[dagon]

What does smtj  mean

that sufferedmorethanjesus guy

peace

[Malone22]

smtj Thank you....Dagon
I find a lot of comfort in the fact that IVANM calls me a Motherfucker...it further proves what a fool he is..

[ivanm]

ivan,  how about picking the salient points out and posting those.  this word dump is a bit much to wade through.

and no,  companies are not waiting til obama is out.  they've been hoarding cash for years which was pointed out in the word vomit that you cut and pasted if you read it;  which you didn't.

the new business model is to maximize holdings so that executives and shareholders are guaranteed a big payout.  if jobs are needed,  they are imported not grown domestically again for the sole purpose of executive and shareholder compensation.

remember the bush tax cuts?  did companies open up their pocketbooks when they got that windfall?  did they create new jobs?  no,  the exact opposite happened.  so you can put "obama" on auto-repeat all you want.  it doesn't address what has been going on with corporations for a few decades now.  but you're not about reality or solutions are you?  you're just willing to spend your remaining years bitching at the wind.

"get off my lawn you damn young whippersnappers"!

peace

You need to do a little reading yourself,  as the shareholder are not getting a big payout. That was so obvious that even a retardo like you should have caught it.