Wednesday, May 23, 2012

Corporations Hoarding Cash

Those who argue U.S. corporations are hoarding cash really are not looking closely at balance sheets.

They are looking at cash deposits only. In other words, they are not aware of business operations or principles, or they simply make it a practice to overlook normal business obligations. The latter may be direct, pending or contingent, but they represent liabilities that companies have. (See the Earl J. Weinreb NewsHole® comments.)

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