Comments on: "Corporate America sits on its cash"

By: Juan

Juan — Wed, 24 Sep 2008 19:18:00 +0000

i would guess profit share to have been inflated and that total profit of production capital relative to total mass of that capital has been/is no where near record territory but that rate of profit has been in decline.

weakening nonresidential fixed investment, growing cash hoards, rising unemployment, stagnant/falling real wages, business failures, etc, all phenomena of recession, flow from and act back on the above.

increased support to the financial sector cannot be a solution.

By: donna

donna — Wed, 24 Sep 2008 15:42:00 +0000

This is exactly the problem. Corporate American didn’t share its wealth with the workers. Then they’re surprised when people can no longer afford houses in the rising housing bubble. Then they’re surprised that people are angry about bailing out corporations whose executives have raked in billions.

Idiots.

By: Sivaram Velauthapillai

Sivaram Velauthapillai — Wed, 24 Sep 2008 15:26:00 +0000

This is one of the big reasons I think the economy won’t be as badly off as it otherwise would have been. Corporate balance sheets, excluding financial institutions, are very strong. This essentially means that corporations likely won’t initiate mass layoffs like they have in the past. Employment would get worse but I suspect it won’t be nothing like what one would expect given the massive housing bust.

By: Anonymous

Anonymous — Wed, 24 Sep 2008 14:53:00 +0000

“McDonald’s said in a memo that was obtained by Bloomberg News”

Nothing better to alert us that maybe we cant get a BigMac if congress dont pass the bailout bill…sounds to me like a pr push of the stupidest preportion…then again its directed at the masses and they will bite (pun intended)

By: VoiceFromTheWilderness

VoiceFromTheWilderness — Wed, 24 Sep 2008 14:22:00 +0000

fascinating, just fasinating.

So if the economy is in so much trouble, maybe the corporations, who are the economy, would like to pony up some of their cash instead of the US Governments. These same people who are sitting on 600 Billion dollars are the ones who have been delivering us Republican, right wing, policies for 30 years now.

How absolutely fascinating that 1) there has been no discussion in the msm, or WSJ of this possible funding source, and 2) that most people seem not to connect the dots.

It sure is great to be rich in America.

I wonder how many corporate CEO's are leaving money parked in the corporate account that they intend to use for themselves, so as not to pay taxes on the income. Sure, sure, the corporations money isn't their's to use, yeah sure.

By: Lewis B. Sckolnick

Lewis B. Sckolnick — Wed, 24 Sep 2008 13:03:00 +0000

The PP cannot protect that which does not exist but it can get us some paper which might be good for paper airplanes if that. What is missing is this mess was the total failure to do research before they bought. A little research could have given some realistic values not the pie in the sky now claimed.

By: Anonymous

Anonymous — Wed, 24 Sep 2008 10:50:00 +0000

Great point about the cash hoard in the corporate books. HOWEVER, where is that cash placed? Commercial paper? Money market funds? Uninsured bank accounts? You can see where I am going with this.All (or much) of this “cash pile” is in fact tied up in the financial sector and may not survive a full blooded banking crisis. Perhaps THIS is what the Paulson plan is meant to protect.

By: Lewis B. Sckolnick

Lewis B. Sckolnick — Wed, 24 Sep 2008 08:52:00 +0000

National Bank-Is Andy Jackson having a second coming?

What we need to do is to make things Corporate America wants to buy. Look around you might find something has Made in U.S.A. on it.

By: Jojo

Jojo — Wed, 24 Sep 2008 08:49:00 +0000

Speaking of Bank of America – I have a 35k open credit line available with them. Each month they send me checks almost begging me to use one or more of them. But they want to charge me 11% interest! So I don’t think so.