So, does this mean that "Accumulate, accumulate!" may not be the Moses and the Prophets of the "capitalists"?
On 3/2/07, Doug Henwood <[EMAIL PROTECTED]> wrote:
On Mar 2, 2007, at 11:52 AM, Eugene Coyle wrote: > One remark puzzled me. I believe you said something like this: > Corporations and big money are awash with cash, but they are not > using it to buy real assets that will contribute to growth. Rather > they are using it to buy existing assets, their own shares, and > pouring money out to stockholders. > > If you did say something like that, here's my question: If they buy > existing assets, the seller now has the cash. Or the person getting > the dividend has the cash. What does the seller do with the cash? > > How can you get rid of cash? I did say that - I get it from the flow of funds accounts. They plow the cash back into the markets, buying other stocks or buying whole companies. Or they buy a fourth or fifth house, and outfit it with a dozen HDTVs. Doug
