"'Cash accumulation by major U.S. corporations is at an all-time high since the 1960s,' said Kenneth N. Daniels, a finance professor at Virginia Commonwealth University. 'Firms are hoarding cash, banks are also not lending . . . and the economy will not rebound at the pace or the magnitude to significantly change the unemployment rate over the next 18 months.'
The recession, Daniels said, changed the way many corporate executives feel about managing their cash -- they want to hang on to it."
Sunday, February 21, 2010
Businesses, banks hoarding cash | Richmond Times-Dispatch: