In the latest data released by the Fed, corporate strategics in the U.S. are sitting on an estimated $1.9 trillion in cash. This represents a 35% increase since the first quarter of 2009, or an increase of approximately $489 billion dollars in cash. In some circles, this cash accumulation has been labeled as “excessive,” since investing in growth and hiring newhave not followed the increase.
However, Treasury Strategies Inc., a leading Treasury consulting firm, takes a different view of this accumulation. Beginning in the first quarter of 2009, companies began to accumulate substantial amounts of cash, which triggered accusations of hoarding. [Read more…]