Comments on: America’s two-speed economy http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/ Sun, 28 Jul 2013 14:34:09 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: socialecon http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-40 Mon, 12 Jul 2010 08:33:46 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-40 American CEOs are sitting on record amounts of cash on their balance sheet. Most US companies do not expect to spend any of their cash according to a recent survey. (http://www.ft.com/cms/s/0/56e5f858-8228 -11df-938f-00144feabdc0.html)

Sitting on mountains of cash is the worst use of capital. Period.

By holding on to all this cash, American companies are anti-American, anti-jobs, and anti-shareholder. (http://www.businessweek.com/news/2010-0 2-11/jobless-suffer-with-corporate-cash- climbing-to-1-19-trillion.html)

They should be investing in the business or new products, or they should pay out dividends, or they should buy back their own stock.

Anything but sitting on the cash. All of the other uses of the cash would help the economy. It would also help their businesses.

The Association for Financial Professionals, surveying corporate financial planning executives in May, found that 80 per cent of groups expected their cash holdings to expand or stay the same over the next six months, contrary to expectations that cash could soon be used to fuel a further growth economic spurt.

Why don’t you call American CEOs out on being bad for business by sitting on all this cash? I can hear the “sucking sound” as holding all this cash sucks out all of the stimulus and more by holding on to cash.

This is corporate America’s dirty little secret about how UN-American they are — even in a time of economic crisis. They are not serving shareholders by sitting on this cash.

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By: MontyDiego http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-39 Sat, 10 Jul 2010 23:55:12 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-39 This sums it up:
http://www.youtube.com/watch?v=pKv6RcXa2 UI

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By: mactn http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-38 Sat, 10 Jul 2010 02:27:27 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-38 some good comments some so so. The middle class as a diminishing force is a new idea to me. Makes sense though.
Companies going out of the US for its labor force illustrates their main goal – profit. cheaper is cheaper.
However Mr. Shahit Muja made some very thoughtful points about wealth and why persons go hungry in this world – thoughtful but very naive. I am thinking of investing in Albanian minerals though. That caused some thoughtfulness on my part.

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By: mckibbinusa http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-37 Thu, 08 Jul 2010 14:29:34 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-37 No worries — prosperity is right around the corner — it’s all good…

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By: pesheff http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-36 Thu, 08 Jul 2010 14:03:58 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-36 Look to the banking cartel around the FED along with their string of pro-“globalization” economists who claim that we’re better off under this new global world! I beg to differ! Please compare standards of living with 10 then 20 years ago and see for yourselves what has happened to the middle class world-wide! How is it possible for people to live much worse off under this new system, than under communism in Eastern Europe for example? Or why has famine and disease in Africa increased if we were so much better off now? There are consistent rumours out there that the global elitists are employing Maltusian theories and trying to reduce the world population. It is a well orchestrated plan that has been going on for many years and we’re only seing the first signs…Please read: END THE FED by Ron Paul

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By: sahuntree http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-35 Thu, 08 Jul 2010 11:59:16 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-35 My dad, may he RIP, was prophetic. Twenty five years ago he saw that our middle class American life styles were out of balance with the rest of the world. Add to that our educational system that is not keeping pace. When India has more honor students than we have students how do we compete? There is no miracle cure for living with expectations of upward financial mobility, but not being the best educated to compete with the rest of the world. It ain’t going to happen….

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By: Middleclassman http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-34 Wed, 07 Jul 2010 23:13:56 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-34 Dear Ambani,

Your facts are correct, but there in lies the problem! If everybody on Earth lives to a “ripe-old-age” then what happens to US??? The Earth’s resources are being stretched to the limits as I type, more people means MORE people pro-created, which means more mouths to FEED, which means we’re approaching the “melt-down” point of human-exsistence. There are ALREADY “water-war” type conflicts globally, famine is a VERY REAL POSSIBILITY! Rapid transmissions of diseases our medical people know nothing about nor can control! I’m NOT religious-person by any stretch of the imagination but I follow global problems on a daily basis and it “SCARES THE CRAP” out of us!!! Nobody wants to play “GOD” but how many “people is enough???”.

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By: STORYBURNeasy http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-33 Wed, 07 Jul 2010 23:05:21 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-33 America can no longer support the 310 million that live here. We have the most read general life, home foreclosure and job hunting stories on the web at http://storyburn.com

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By: DisgustedReader http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-32 Wed, 07 Jul 2010 23:03:24 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-32 America prospered in an era of abundant resources, allowing the wealthy greedy brown-nosed elite to allow the majority of people “beneath” them to party at bountiful banquet tables. Now, with not so abundant resources, the lower-crust of society is crawling around under empty banquet tables, eating table scraps thrown to the ground by the upper-crust minority. What are the elite complaining about these days? Well, for one thing, the lower-crust are taking up valuable land space that could be allocated to sprawling country estates that would make English manors look like tiny tract homes by comparison. Visions of an America with just one percent of its present population, with estates the size of valleys surrounded by mountains and serviced by high-speed helicopters, such are the fantasies of those who put up with the rest of us.

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By: wisdomseeker http://blogs.reuters.com/chrystia-freeland/2010/07/06/americas-waning-days-of-opportunity/#comment-31 Wed, 07 Jul 2010 22:56:53 +0000 http://blogs.reuters.com/chrystia-freeland/?p=37#comment-31 Many of you guys are angry at these global companies for out-sourcing their labor, and demand they keep more jobs in the US, the problem is, as many people have stated, the increased labor costs will make them uncompetitive in the global market. So this is obviously a structural issue and I happen to agree with the quote that these are ‘the inevitable consequence of the twin revolutions of globalization and technological change.’ So I think the solution, or maybe I should say a part of the solution, is counter-balancing social change, and I think this will probably happen naturally (though some kind of guidance could maybe make the change smoother and faster…). As for what that social change will be, well I’m not sure, but it would be nice to see a way for local economies to become competitive with the global economy, maybe through some new social norms or pressures that affect our perceived value of buying local.

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