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U.S. companies hoard record amount of cash

Dragonfly

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Companies have $1.4 trillion in cash. Will they spend it? - Mar. 20, 2015

[h=2]Corporate America has so much cash sitting in the bank that it could purchase the Dallas Cowboys 437 times without borrowing a dime.[/h]Or if these titans of business really love House of Cards they could splurge by acquiring Netflix(NFLX, Tech30) 53 times. They could even buy Apple (AAPL, Tech30), Facebook (FB, Tech30) and Warren Buffett's Berkshire Hatahway (BRKA) and still have cash to play with.
In other words, big American companies literally have more cash than they know what to do with.

I have a few thoughts on what they could do with it.
 
Considering the employer mandate for the ACA is still in limbo and the Republicans have taken over Congress and may take over the White House in a couple of years, it's not surprising that businesses would hold onto their liquid assets until they see how these things shake out.
 
Considering the employer mandate for the ACA is still in limbo and the Republicans have taken over Congress and may take over the White House in a couple of years, it's not surprising that businesses would hold onto their liquid assets until they see how these things shake out.
Yeah, "Thanks , Obama."

lol
 
Yeah, "Thanks , Obama."

lol

I think in this case it would be "thanks Congress". But presumably, from your chuckle, you believe there's no issue related to the ACA and businesses expanding and hiring during the uncertainty, nor any other chill related to the EPA, labour, and other issues directly affecting businesses. We'll see.
 
1) one time bonuses for employees
2) cut prices and see if sales increase and even more profits are made
3) give out raises
4) provide more benefits to employees
5) provide an actual and HONEST cost of living increase to employees
 
I have a few thoughts on what they could do with it.

Why should it be up to me what a private company does with their money?

(I mean, I get the economics of pools of money sitting in the hands of the few but we really have Congress and the Fed to thank for this economic model we have now.)
 
Considering the employer mandate for the ACA is still in limbo and the Republicans have taken over Congress and may take over the White House in a couple of years, it's not surprising that businesses would hold onto their liquid assets until they see how these things shake out.

Now that is a hard nosed aproach and heartless!
 
1) one time bonuses for employees
2) cut prices and see if sales increase and even more profits are made
3) give out raises
4) provide more benefits to employees
5) provide an actual and HONEST cost of living increase to employees

6) Make them pay welfare!
 
1) one time bonuses for employees
2) cut prices and see if sales increase and even more profits are made
3) give out raises
4) provide more benefits to employees
5) provide an actual and HONEST cost of living increase to employees

What's the saying? Stupis is as stupid does.
 
I don't see the problem. They have money that they don't want to spend for whatever reason. It's their money and nobody else's business. But hey, it's the internet, so everything is fair game.

The question could be turned around: what incentive is the OP giving them to spend, and in what way would they benefit?
 
I'm sure everyone has ideas on what people or companies should do with their money, but does anyone have the right to tell people or businesses what to do with their money? Do you? Does the government?

Yep, see PPACA and the federal, state and local minimum wage laws. The new trend is not to take money, via taxation, and to then supply public benefits but to mandate that employers do so as directed by the government.
 
I don't see the problem. They have money that they don't want to spend for whatever reason. It's their money and nobody else's business. But hey, it's the internet, so everything is fair game.

The question could be turned around: what incentive is the OP giving them to spend, and in what way would they benefit?

I agree with you.

I think the counter argument is that thing Bush called "compassionate conservatism", or what some call "responsible capitalism".

That is, considering the vast disparity in wealth distribution in this country, would those holding the money be acting in a responsible and humane way if they raised wages a bit? Increased benefits a bit?
 
I agree with you.

I think the counter argument is that thing Bush called "compassionate conservatism", or what some call "responsible capitalism".

That is, considering the vast disparity in wealth distribution in this country, would those holding the money be acting in a responsible and humane way if they raised wages a bit? Increased benefits a bit?

This question doesn't matter...if those holding the money decide not to care about acting in a "responsible and humane way". Heck, they may not believe doing those things you suggest ARE responsible and humane.
 
This question doesn't matter...if those holding the money decide not to care about acting in a "responsible and humane way". Heck, they may not believe doing those things you suggest ARE responsible and humane.

Exactly! My question doesn't matter, and your answer doesn't either. :)
 
I'm sure everyone has ideas on what people or companies should do with their money, but does anyone have the right to tell people or businesses what to do with their money? Do you? Does the government?

Some people have the... Well not right... But the power to tell the business what to do with their money.

They are the investors.

Hoarding cash during the recession? Fine. Hoarding cash when the recession is over? The companies better give the investors a good reason is all I can say.

If I were the investors I'd start questioning soon.
 
I agree with you.

I think the counter argument is that thing Bush called "compassionate conservatism", or what some call "responsible capitalism".

That is, considering the vast disparity in wealth distribution in this country, would those holding the money be acting in a responsible and humane way if they raised wages a bit? Increased benefits a bit?
Why would they? What's their incentive?
 
Some people have the... Well not right... But the power to tell the business what to do with their money.

They are the investors.

Hoarding cash during the recession? Fine. Hoarding cash when the recession is over? The companies better give the investors a good reason is all I can say.

If I were the investors I'd start questioning soon.

I agree. The investors have a stake in the business. The bulk of our country's citizens don't.
 
I agree with you.

I think the counter argument is that thing Bush called "compassionate conservatism", or what some call "responsible capitalism".

That is, considering the vast disparity in wealth distribution in this country, would those holding the money be acting in a responsible and humane way if they raised wages a bit? Increased benefits a bit?

What benefit to the business would unilaterally increasing their labor costs (wages/benefits) provide? If the business later wished to expand then they would have less capital available as well as higher labor costs to contend with compared to their competition.
 
Now that is a hard nosed aproach and heartless!

Its not heartless.

What's heartless is lying to get a bill passed that targets the middle classes discretionary income and kills jobs.

ObamaCare was heartless, and the Corporations have every right to spend on hoard their PROPERTY as they see fit.
 
Can you blame them? Corporate America is in the crosshairs of our hipster president and his band of fools and assassins.

Best let the the traitor leave office first, and then reconsider business strategies and models.

That's certainly what we're doing.
 
An employer's job market and nothing but money. They've got it good.

Elections have consequences, and so does ObamaCare.

Morons elected a hard left ideologue who threw a huge wet blanket on the American economy and now they're blaming the Corporations.
 
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