Record amount of cash on Corp balance sheets

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The slogan should be “Hoarding cash is all we care “.

US companies have stockpiled 2.12 Trillion dollars cash on balance sheets while ordinary Americans are running from pillar to post in search for jobs and food stamps. The unemployment rate stuck at 8.6 percent. The non financial corporate balance sheets couldn’t be better looking in the last three years as they pile up cash on the balance sheets. It must be a dream come true for most accountants and gives an sparkle in the eye, doesn’t it?

Cash hoard is increasing while hiring, investment and research and developments have taken a back seat and are not important to the corporate world. With less hiring, payrolls are added back to balance sheets as the same employees are now overworked and stretched to the limits doing more.

The notion of ‘fool me once shame on you, fool me twice shame on me’ is fully reflected in corporate balance sheets,” said Jeff Greenberg an economist at Nomura in New York. What is this fool me twice is all about? It can simply be explained as a fear of another recession while Bernanke and President are at the helm running the country. The fact is none of the symptoms of a recessions are showing up in the economic data. European debt problems still persists but the US economy is on the mend as far as the economic data shows.

No one knows what happens but the hiring freeze will not be over until 2012 elections. By than either Occupy Wall Stree

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