not ask "Why? If they have stockpiled all that cash...?
what are they planning to DO with this money...
The answer is, of course, to refinance their old more expensive debt.
While you listen, or not listen, to the screaming in DC about Govt debt...
you do NOT hear much, from "Them" or the press...
and never from CNBC of Faux News...
about "corporate debt".
The total increase in corporate debt during the W years was even greater than the total govt debt W ran up on U.S..
True, the foreign trade deficits were out side that box.
and the war costs that were not, and still are not, paid for are also.
Nevertheless, from GM and Chrysler, to AIG...
to the Big Bailed Out Banks..., to the little community banks...
everybody was taking out massive increases in debt.
Now, they have to re-finance.
What "They" are NOT telling U.S. is that our Govts could save U.S. a TON of money...
by simply calling all high interest Govts bonds and borrowing...
and replacing it with current low interest borrowing.
Just as YOU should look at a REFI of your home loan, so they should to.
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Corporate debt issuance at 3-year high
http://money.cnn.com/2010/09/10/markets/bondcenter/bonds/
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