Quote:
Originally Posted by Slava
I just feel like someone should point out a reason why these corporations are sitting on cash. Its not only the large corporations, small and medium sized businesses are doing this as well.
Rather than let this myth perpetuate for another 40 pages though, its not "Obamacare", or whatever other democrat centered red-herring you come up with. The reality is that the banks are not really lending to business. Its really that simple. This won't explain a company like Apple per se, but that is just business making sure that they can weather a storm on their own in case the financing isn't there. Nothing devious, nothing political.
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Do you have any data supporting the notion that small and medium size businesses are sitting on cash? I understand that corporations including banks balanced their books quickly by downsizing. Smaller businesses shed jobs too but, I would think they would have a harder time balancing their lost of productivity with there overhead.
Also why aren't the banks lending money?