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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Taikun who wrote (52755)6/23/2006 2:06:58 AM
From: Perspective  Respond to of 116555
 
Low interest rates force cash out of conservative "risk-free" instruments like T-bills and into riskier investments, things that support capital investment and increase supply.

I think the higher cash holdings at corporations are a result of surging profitability, thanks to squeezing labor and the US taxpayer.

BC