The most recent estimate is that American corporations are holding $1.845 trillion in cash and short-term, liquid assets. This is about 7% of total assets, an amazingly high number.
Lahart, Justin, 2010. Companies still holding lots of cash. The Wall Street Journal, Sept. 17.
Firms seem to have little desire to invest the cash. Confounding things, with US stock prices depressed because of the weak stock market, corporations still appear reluctant to implement stock buy-back programs.
This single fact is perhaps the best sign that trouble remains ahead for the US economy.
I believe that there are structural changes happening in investing and the way corporations view risk that will force many changes to American society. The public is not prepared to accept these changes.
I never though I would see that day that corporations would choose to sit on large piles of cash rather than invest in America.
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