Tuesday, July 6, 2010

You Know, This Might Explain Why We Aren't Seeing a Real Recovery

US businesses have accumulated $1.84 trillion in cash and cash like assets, and they have essentially stuffed their mattresses with them.

So instead of investing in new plants and equipment, or in product or process improvement, they are holding onto cash, because they are concerned that the banks, the ones that we the taxpayers bailed out to the tune of trillions, will cut off their credit.

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