Monday, April 22, 2013

Corporations Generally Don’t Hoard Cash

                    
Politicians who argue U.S. corporations hoard cash are not looking closely at balance sheets.
                       
They are looking at cash deposits only, and  are not aware of business operation principles. Thus, they  make it a practice to overlook normal business obligations. The latter may be direct or pending debts, or contingent costs, All represent liabilities that companies currently or eventually have.

A business man cannot conveniently sweep debt under the rug. He gets fired or jailed for doing so. A politician simply gets re-elected for such action.
(See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)                                    

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