Corporate America sitting on record cash stockpiles

Corporate America sitting on record cash stockpiles
By JOE BEL BRUNO
ASSOCIATED PRESS
NEW YORK, May 26 — Imagine the dilemma of having so much cash in your bank account that you didn't know what to do with it.



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This is of course a pipe dream for the average American, but is now reality for the country's biggest corporations. The industrial companies that make up the Standard & Poor's 500 index — which excludes financial, transportation and utility companies — have a staggering $643 billion in cash and equivalents.
Wall Street analysts remain unsure how companies will spend this record hoard. Even an unprecedented $500 billion of stock buybacks over the past six quarters have failed to stop companies from building lofty amounts of cash on hand.
''We're in a time that is out of whack with all historical numbers,'' said Howard Silverblatt, equity market analyst at Standard & Poor's. ''People are demanding why corporations need so much cash, what are they going to do with it? In spite of stock buybacks, dividends and acquisitions, this cash is still going to take a while to spend.''
Companies began propping up their reserves through 16 straight quarters of double-digit profit growth. The money tucked away in corporate coffers has now gotten to the point where it's having a major impact on quarterly earnings, with S&P reporting that income earned on the interest rose 37.9 percent in 2005 and is expected to increase another 64 percent this year.

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http://famulus.msnbc.com/famulusgen/ap05-26-144902.asp?t=APCOM

the date is May 26th

cheap. The Have Mores, will HAVE IT ALL then. That has been their goal since 1933. They have the money now to turn back time to the "GOLDEN AGE." Back past the days of FDR...all the way back to the OLD DEAL! The deal where, people who work for a living, bow down to the white devil slavemasters, or their working class kids starve, in front of their eyes.

"That what the deal they be dealin' in"...

got a whole lot richer. So rich it was almost pointless. The rest of the population stood in breadlines.

before the big haul was set into action. They wanted it all this time! The Bush/Walker family made millions in the crash of 29...

Someone forgot to tell these greedy bastards what their role in the trickle down theory was. It has happened every time some ignorant assed republicans voted for corporate tax cuts. They get the cuts, stash the cash, instead of creating jobs and retooling, or even, god forbid, giving their employees a raise! What drives these greedy bastards?

Greed is the motive power behind Bush!

Where's the great philanthropy projects? The only one I hear about is Gates' Foundation, which has been shoveling cash at some pretty good projects. But nothing at all from the oil industry?

Oh, I forgot, they have all those exec salaries to pay.

...after the revolution.

That was the theory. Instead they are keeping it for themselves to pay the big Bucks to their CEO's/CFO's/COO's and Boards of Directors.

Coincidence?

As long as the Fed keeps inflation low.