The Myth of Corporate Cash Hoarding | Alan Reynolds | Cato Institute: Commentary

The Myth of Corporate Cash Hoarding | Alan Reynolds | Cato Institute: Commentary: "Point No. 2, about safety cushions, alerts us to the fact that $1.93 trillion of liquid assets would not begin to cover $3.67 trillion of short-term debts, let alone ongoing expenses such as payroll. To describe the liquid assets as 'hoarding' (regardless of debts) is witless. The recession in 2008-09 would have been far less painful if nonfinancial corporations in 2007 had been 'hoarding' more liquid assets (they had $1.53 trillion)."