Corporate profits are way up and yet they are all hoarding cash? Maybe they can bail out the government spend thrifts? But seriously what will they do with all this cash, as none of them are out buying up other companies right now other than the transportation sector. We see these huge balance sheets with cash, but they are not buying back stock, why not? Is it a wait and see approach? Waiting for what? For Elliot Spitzer to come sue them and steal it thru extortion type lawsuits? Why are these Corporations not spending, could it be that they do not feel the regulatory climate or political climate is right yet? Would you invest in America knowing of all the regulations or would you look for a way to move your company off shore to avoid this garbage? Would you not rather wish to move your operations over seas, take advantage of the cheap labor and tell the Unions and the government to stick it up their poop shoots? Well that is what so many Corporations are saying without saying it really. You see why should the re-invest? Ah, but there is a reason; Technology. If they invest in research and development they will get ten-fold back the profits later. So, we can expect further Corporate investment in technology and Research and development and overseas. Consider all this in 2006. |
