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Companies stash cash, but won't hire

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  • The development presents something of a chicken-and-egg situation — corporations keep saving, waiting for the economy to perk up, but the economy is unlikely to perk up if corporations keep saving.
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  • Pushing working people down
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  • The jobs emergency
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Graham Bowley, New York Times | NY

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While many households and small businesses are being turned away by bank loan officers, large corporations are borrowing vast sums of money for virtually nothing — simply because they can.

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Companies such as Microsoft are raising billions of dollars by issuing bonds at ultra-low interest rates, but few are spending the money on new factories, equipment or jobs. Instead, they are stockpiling the cash.

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The development presents something of a chicken-and-egg situation — corporations keep saving, waiting for the economy to perk up, but the economy is unlikely to perk up if corporations keep saving.

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More...

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Related:

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Pushing working people down, James Clay Fuller, Things We're Not Supposed to Say

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  • Those who are benefiting from the rotten economy are the wealthiest 20 percent of the American people, who hold upward of 85 percent of the country's wealth.
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  • Tell Mott's: get the scabs out of your applesauce!
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The jobs emergency, Robert Reich

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  • Twelve thousand new jobs in July -- when 125,000 are needed monthly just to keep up with population growth, when more than 15 million Americans are out of work, and when more than a half-million more state and local jobs are on the chopping block.
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  • Predictably, Washington's latest rescue effort falls woefully short
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  • U.S. Experiencing Worst Episode of Prolonged Unemployment Since Great Depression
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  • An aid package to the states to prevent layoffs was funded by cutting the federal food stamp program.
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