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- #21
On a broader note, the Wall Street Journal reports that non-financial U.S. companies are sitting on $1.9 trillion in cash, not investing it in productive projects at a time when our economy could use a boost. Imagine if Apple, Google, Microsoft and many other companies paid, for the first time, or raised their dividends and together poured $200 billion into the hands of shareholders. That would increase consumer demand when it is needed. Instead management seems content to sit on the inert cash in excess of what is prudently needed.
Top management, having turned the wide-open 'business judgment' rule into an anti-shareholder forcefield, has to realize that this trove of money is not their money, it is our - the owner - shareholders' money!
Ralph Nader's Update #1 to Upset Cisco Shareholders - The Nader Page
As if companies need nader, of all people in the US, to tell them how to run their companies. He hasn't even operated a lemonade stand, and if he did, it probably would go bankrupt.
The reason companies are sitting on their money is well known - it's the uncertainty created by obama and his claque of leftwing economists and other statists. From huge corporations to mom and pop stores, they have no idea what crackpot leftwing idea will be foisted on them next, so they are using prudent caution. Leftwingers want companies to bail them out of the consequences of their failed porkulus and other mismanagement of the country, but it's not going to happen.
The trend of companies holding more cash is not new. Between 1980 and 2006, the average cash-to-assets ratio for U.S. industrial firms more than doubled, according to research by finance professors.
Companies pile up cash but remain hesitant to add jobs
It has nothing to do with Obama...
But thanks for playing.