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Economy
See other Economy Articles

Title: Companies hold record $837B in cash, yet won't hire workers
Source: USA Today
URL Source: http://www.usatoday.com/money/compa ... 28_ST_N.htm?utm_medium=twitter
Published: Jul 28, 2010
Author: Matt Krantz
Post Date: 2010-07-28 10:03:35 by lucysmom
Keywords: economy, profits, jobs
Views: 11425
Comments: 21

Anyone wondering where all the economy's jobs are might want to look into piggy banks of the world's biggest companies.

Cash is gushing into companies' coffers as they report what's shaping up to be the third-consecutive quarter of sharp earnings increases. But instead of spending on the typical things, such as expanding and hiring people, companies are mostly pocketing the money and stuffing it under their corporate mattresses.

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Begin Trace Mode for Comment # 14.

#1. To: lucysmom (#0)

The smart money isn't stupid. They know that the cost of hiring a person is going up with the stupid health-care bill.

They also know the with the expiration of the Bush tax-cuts the economy goes into the shitter next year.

Nebuchadnezzar  posted on  2010-07-28   10:07:29 ET  Reply   Untrace   Trace   Private Reply  


#4. To: Nebuchadnezzar (#1)

They also know the with the expiration of the Bush tax-cuts the economy goes into the shitter next year.

Odd, don't you think, that before the Bush tax cuts the economy thrived?

lucysmom  posted on  2010-07-28   10:16:35 ET  Reply   Untrace   Trace   Private Reply  


#6. To: lucysmom (#4)

Odd, don't you think, that before the Bush tax cuts the economy thrived?

Ha! Not that I'm a big fan of Bush, but the Clinton "recovery" was all bullshit. Nothing but paper gains.

Economy went into a recession in late 2000 so if it was so good how come it went into the shitter?

Nebuchadnezzar  posted on  2010-07-28   10:35:17 ET  Reply   Untrace   Trace   Private Reply  


#12. To: Nebuchadnezzar (#6)

Economy went into a recession in late 2000 so if it was so good how come it went into the shitter?

Greenspan raised interest rates three times in 2000 to slow the economy down - perhaps he overshot his goal.

lucysmom  posted on  2010-07-28   10:59:08 ET  Reply   Untrace   Trace   Private Reply  


#14. To: lucysmom (#12)

Greenspan raised interest rates three times in 2000 to slow the economy down - perhaps he overshot his goal.

Much of the late 90's "growth" was due to horseshit internet stocks and the huge amount of money that went into that "soon-to-be-dead" sector.

It was nothing more than a bubble. Bubbles are when resources are mis-allocated and the NASDAQ at 5000 was an incredible misallocation of funds.

Bubbles are not true economic growth.

Nebuchadnezzar  posted on  2010-07-28   11:13:18 ET  Reply   Untrace   Trace   Private Reply  


Replies to Comment # 14.

#16. To: Nebuchadnezzar (#14)

Much of the late 90's "growth" was due to horseshit internet stocks and the huge amount of money that went into that "soon-to-be-dead" sector.

That sector is still alive today, though not all players. Amazon, for example, had a tough time getting that particular rough patch.

The Fed's half-point rate increase on May 16, 2000, was supported by a 10-0 vote of the FOMC although the transcripts showed that some members said they would have preferred a smaller quarter-point increase, expressing worries that the central bank could over-shoot in the credit tightening effort.

William McDonough, then the president of the New York Federal Reserve Bank, said he was concerned that the current public confidence about the economy, which had held up despite the fact that stock prices had begun to decline in 2000, could reverse rather quickly.

www.usatoday.com/money/ec.../fed/2006-04-04-fed_x.htm

lucysmom  posted on  2010-07-28 13:04:19 ET  Reply   Untrace   Trace   Private Reply  


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