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Companies are starting to spend some of their record piles of cash, but for most, the cash is...

Companies are starting to spend some of their record piles of cash, but for most, the cash is still piling up faster than they are able or willing to spend it. Half of executives in a new survey said their cash balances would hold steady in the coming year, 29% said the balances would increase, and 21% said they would contract.
Comments (9)
  • Stone Fox Capital
    , contributor
    Comments (5930) | Send Message
     
    Piling up faster is the part that most investors miss. Any analysis of cash balances tends to forget that US companies continue to pile up record amounts of cash and any spending usually doesn't even match what is being made.
    28 Jun 2011, 04:48 PM Reply Like
  • Nancy Lewine
    , contributor
    Comments (32) | Send Message
     
    Become more willing and start hiring already! You have the cash and you know it will continue to roll in.
    28 Jun 2011, 04:56 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3314) | Send Message
     
    Nancy Lewine,

     

    Perhaps you should just go out and spend some money on something you don't need, just because you have the money.

     

    You will be supporting the economy, you know.
    28 Jun 2011, 06:24 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3314) | Send Message
     
    Hanging on to too much cash is a waste in a low interest environment.

     

    Not to mention those that have "Too Much" just might find Obama trying any way to get his hands on it.
    28 Jun 2011, 04:57 PM Reply Like
  • Duude
    , contributor
    Comments (3368) | Send Message
     
    Corporations are in the business of taking on risk when the return justifies the risk. It makes zero sense to leave money on the table if expansion provides a reasonable risk/return ratio. Its not out of greed that they aren't expanding as fast as we'd like. If the opportunity is there they'll seize upon it, or someone else will.
    28 Jun 2011, 05:59 PM Reply Like
  • 1980XLS
    , contributor
    Comments (3314) | Send Message
     
    Yes Obama may sieze upon their Money, one way or the other.
    28 Jun 2011, 06:25 PM Reply Like
  • Nancy Lewine
    , contributor
    Comments (32) | Send Message
     
    I agree. I think the cash hoarding is more from fear and less from greed. In many cases, the fear has turned into paralysis.
    30 Jun 2011, 07:59 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3529) | Send Message
     
    Just as investors hold cash when the market looks dangerous, business defers investment until the rules are clear. We have volumes of regulations coming out and still to come. Why stick your neck out and find out your projected R.O.I. is not allowed?
    28 Jun 2011, 11:02 PM Reply Like
  • Nancy Lewine
    , contributor
    Comments (32) | Send Message
     
    Wouldn't that be called "innovative or entrepreneurial," to stick your neck out? Our capitalistic society depends on a certain amount of that willingness to risk. Hopefully, we've learned more about prudent risk versus foolish risk.
    30 Jun 2011, 07:57 AM Reply Like
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