Sage wisdom from our favorite socialist....

submitted by howardlong75 from i.redd.it

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[–]Tom_Bombadil 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (4 children)

The pool of 3,000 companies held about $2.7 trillion in cash as of their latest financial filings, off about $100 million from the year-earlier period. The analysis included publicly traded U.S. companies with a market capitalization of at least $100 million. The Business Journals excluded the banking sector due to its unique cash-holding requirements.

[–]LancerCaptain_Rooney 3 insightful - 2 fun3 insightful - 1 fun4 insightful - 2 fun -  (3 children)

Fair is fair. Does it exclude the mezzanine financing sector or other companies that hold onto other peoples money? That doesn’t answer WHY a company would hold onto cash. What return does one make on cash?

[–]Tom_Bombadil 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (2 children)

What return does one make on cash?

The absence of risk.

In 2008-2009 this groups who had cash on hand bought up assets for pennies. I think that everyone's plan is to mimic this strategy during the next recession.

So they're sitting on hordes of cash.

The banks have surely planned for this.

My theory is there will be a double dip recession, which will attempt to bankrupt investing companies by creating a market crash, a tremendous spike in Wall St gains, followed up by a second and more severe crash.

In reality, this has been going on for some time. In the 90's companies had the same problem finding investments for their hoarded cash. The market is a fraud. It isn't actually connected to the real economy in any real sense. It's speculation.

Are you familiar with how money is actually produced? It's not at a mint. It's the greatest financial scam in history.

[–]Jesus 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (1 child)

So, what should you do to compensate for the coming crash?

[–]Tom_Bombadil 1 insightful - 1 fun1 insightful - 0 fun2 insightful - 1 fun -  (0 children)

Cash on hand is always smart; assuming the currency doesn't collapse. If dollars collapse then all bets are off, and war is a certainty.

Prescious metals can offset risk of currency collapse.

These risk with every option. Hedge your bets.