Companies Hoarding $1 Trillion In Cash
The hoard totals about $1 trillion for U.S. companies, Reuters reports, citing data from Moody's. For non-financial companies, the total is about $943 billion as of the middle of 2010, compared to $775 billion at the end of 2008, Moody's said.
Even though revenue decreased in the second quarter, corporate profits in the S&P 500 were up 38 percent from the same period last year, the Wall Street Journal reported earlier this month. Thanks to massive cost-cutting strategies, such as firing employees, it was corporate America's sixth highest quarterly profit ever.