Corporations Building Cash Reserves

Non-financial companies now hold almost $1 trillion in cash.  They can’t expand with it.   Mergers and Acquisitions are on hold.  Corporations aren’t even buying their own beaten down stock right now.

They’re just sitting on a record high 10% cash to assets ratio.

Meanwhile, financials are holding their breath for the very threatening financial regulations that Congress has been cooking up.  There’s a big chance that large banks will be required to add even more capital to their reserves.

Again, and again, businesses know they can’t count on access to banks or markets to fund their efforts.

There’s tremendous potential stacking up, here, for the day CEOs feel it’s safe to go back to work.