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As earnings season crashes upon us, it's become glaringly apparent that corporations are sitting...

  • Tuesday, October 23, 2012, 7:36 PM ET
    As earnings season crashes upon us, it's become glaringly apparent that corporations are sitting on record piles of cash, reluctant to invest in their businesses or hire new workers in an uncertain economic outlook. At present, cash balances have swelled by 14% and are on track toward $1.5T for companies in the Standard & Poor's 500, which, if attained, would be a historic high.
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This news story has 23 comments:

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    money money money money MONEY
    23 Oct 2012, 07:37 PM Reply Like
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    And not one comment from, or attempt by, the Romney campaign to make CLEAR that these trillions of dollars could generate millions of jobs, within MONTHS, once a real economist and businessman was in the White House. He may win the election, but his campaign is as poorly run as Bob Dole's and John McCain.
    23 Oct 2012, 07:42 PM Reply Like
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    You, sir, are confused. Trickle down economics doesn't work. Without money in *consumers'* pockets, there is no economic activity. Conservative economics has created the current global wealth stratification. There are no consumers. Not just in the US, but globally. Why would a corporation start producing excess inventory or hire workers to produce that excess inventory when it has no one to sell its current inventory to?
    23 Oct 2012, 08:26 PM Reply Like
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    @GJ: Romney? He will do it? You are kidding me. He was Governor in MA - what he do there (other than cutting Veterans benefits!). You know what he did? No jobs but deficit. His track record really is only good in private industry squeezing money out of the system. He knows trickle down. He is up and we are down.
    23 Oct 2012, 08:33 PM Reply Like
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    I thought Romney ran a business that specialized in destroying jobs by carving up businesses and/or transferring/selling to china? Did he not have one of the premier outsourcing companies in Bain Capital? Also I was hoping that he could love America by paying taxes on some of his offshore account money....wonder how much that is. Just seems like another rich idiot that made his money by being selfish and mean, and now can't pay taxes on what he rightly owes for his use of the infrastructure, education, etc. he used in the U.S.
    23 Oct 2012, 09:10 PM Reply Like
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    Obama knows trickle down too. Its called Big Statist command & control. Russia was also very good at it, before they fell.
    23 Oct 2012, 09:26 PM Reply Like
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    You don't 'love America by paying taxes'. America was formed revolting from taxes. But, if you personally feel that way, pay more kid. And while I'm thinking of that, why don't you pay your fair share too. You're not carrying your weight. Time to be patriotic. Pay up.
    23 Oct 2012, 09:28 PM Reply Like
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    Paying two people to do a job one person can do isn't a productive use of labor, and getting rid of one of those people isn't destroying jobs, its maximizing profitability my minimizing costs. You want everyone to have a job, get rid of robots, bulldozers, cranes, and railroads. Then we'll have pleanty more machine line assembly jobs, warehouse workers, construction workers, and truck drivers. If you want to get rid of trucks too, we could have more horse farmhands and covered wagon assemblymen. Sure all goods and services would cost more, and I wouldnt be able to get anything I want from Amazon shipped to me in two days, but we'd have sooooooo many more very unproductive jobs!

    As for taxes, no one pays their fair share, its why everyone hires an accountant. Don't hate the man because he's successful, and don't ignore the fact that he gives more to charity in a year than most Americans will make in a lifetime.

    http://on.wsj.com/QUv0KI
    23 Oct 2012, 10:11 PM Reply Like
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    @WJ: England was bleeding its colony. Are the USA a colony now? You think this is comparable with today? Maybe you are an anachronism and that is why you feel you "liberate" the US.
    23 Oct 2012, 10:13 PM Reply Like
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    Good to see all those trillions the Fed has been releasing put to such good use
    23 Oct 2012, 07:49 PM Reply Like
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    Make no mistake about it. If Caesar thought he could get away with it, he'd take that money and buy votes with it.
    23 Oct 2012, 07:53 PM Reply Like
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    Honestly, you are talking about the "banks" like GE, DD, MMM, all these ugly DJI companies and big non-growing S&P 500 dogs that are too fat and not flexible. If you buy stocks of growing companies - hey, they do invest and grow. Dump the DJI and buy growth like IPGP, AAPL, COH, SBUX, DDD, PRLB, KOG, NOG, BIDU, QIHU. So many options of companies that grow and invest and believe in their growth even in difficult times.

    I think Jim Cramer would now disagree.
    23 Oct 2012, 08:02 PM Reply Like
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    Bad business climate makes people uncertain. Between Europe, the fiscal cliff here, the election, and a slowing Chinese economy, its hard to blame companies for hoarding cash. On the other hand, with interest rates this low, its a low bar to get over to get better rates of return than the money markets. The US needs clear leadership as badly as the EU does. Until it happens, companies aren't going to be in a hurry to start spending.
    23 Oct 2012, 08:16 PM Reply Like
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    Don't anyone mention this to Paul Krugman.
    23 Oct 2012, 08:45 PM Reply Like
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    Supply and demand......there's a problem on the demand side of the equation. Dow Chemical is considering closing 20 chemical plants.
    23 Oct 2012, 09:32 PM Reply Like
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    Wrong conclusion. There is a European problem and its showing up in earnings. Why is there a European problem? One word: Socialism.

    So, we don't necessarily have a demand problem. We have a problem globally with debt & public over leveraging due to socialism run amok. We have a problem with politicians turning Europeans into unproductive wards of the state. Guess what really causes low demand? Unproductivity. Do you know what the other name of unproductivity is? Socialism.

    If you have a demand problem, it is because you have a lazy problem. You have in essence a lack of production.

    But, vote democrat. Its better than working, right?
    23 Oct 2012, 10:00 PM Reply Like
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    Blame DD earnings on Socialism. DD and Dow have seen better days. Yes, Socialism is responsible - in China. DD and Dow and fat companies are more like banks - they don't grow much.

    This comment at the end is stupid ("But, vote democrat. Its better than working, right?") I say it again Wyatt - your comment (last line) is extremely stupid. Shame on you. Use your brain and not your emotions perhaps. Maybe you have listened to much to Petterffy adds........
    23 Oct 2012, 10:09 PM Reply Like
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    @Wyatt: It was also socialism for 8 years in the US that tanked the economy by 08, right? We are a socialist country that has 100% debt to GDP ratio and soaring, plus unsustainable trade deficits. We like to just take, and not give.

    Wake up. There is no difference between US and Greece, or most other countries (people are just dumb enough to lend us money at practically no interest... for now). The entire world has been looted by those at the top, and there's not much left to go around. It's gonna get much worse before it gets better.

    You're smoking supply side economics if you think all this money at the top will suddenly hire workers to produce more inventory that there is no demand for, and pay everyone living wages, and wait for them to get back on their feet and start buying the crap they produce. That's trickle down economics I can get behind! But I won't be holding my breath. Make sure you don't choke either.
    24 Oct 2012, 02:07 AM Reply Like
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    Right Wyatt, the consumers are just a lazy bunch. Too lazy to work, and too lazy to buy your products.
    24 Oct 2012, 06:47 PM Reply Like
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    Would holding more cash be consistent with lower revenue and earnings growth? Will the future unfold with cash used for revenue- and profit-generating or with cash used for stock buybacks and dividends, or M&A?
    23 Oct 2012, 09:41 PM Reply Like
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    Mr. RussellB: I doubt that any business plans to make a business out of "destroying jobs". Also, I doubt that a person plans to make money by being "selfish and mean". Are you sure you're not letting your politics get in the way of making good investment sense?
    23 Oct 2012, 09:51 PM Reply Like
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    Why don't you do a little reading? Do you know how private equity firms operate? Bain/Romney/vulture funds make their money almost exclusively by buying up companies in distress and dismantling them and/or shipping them overseas.

    GM's Delco division is the latest example to come out, and one of the biggest. They literally shipped almost every single job to China (28 out of 29 factories). http://bit.ly/RgdHHF

    What about Sensata? http://b.globe.com/SqzXwp

    Politics are politics, but facts are facts. You can't say you never heard anything.
    24 Oct 2012, 02:43 AM Reply Like
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    lol "DD" has put how many unregulated chemicals and poisons into the human environment? get a clue theyre lucky to be in business...
    23 Oct 2012, 11:56 PM Reply Like
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