It may be something in the wind, but is it becoming acceptable for companies to spend again?
Exhibit A: Morgan Stanley politely suggests that, even though companies which actually increase investment in their business with capital expenditure have tended to trail the scrimpers, it might be time to look at the capital intensive types again. Read more
The economic recovery is still weird. Lets get away from the jobs question for a second, and look at capex, where companies are still not spending the cash they make, let alone their cash piles.
Consider this chart from Nikolaos Panigirtzoglou of JP Morgan that caught our eye this week: Read more
Moody’s has completed its annual review of the US corporate cash situation, and here’s the headline news: Read more
Krugman’s had a go, Cowen’s had a response and now Roche has weighed in.
So why are corporates hoarding cash, and is this good or bad for the economy? Read more