Just want to get back to basics and ask this question. One year ago, it was as if we were in a free cash environment. There wasnt enough deals for the amount of free cash that was floating around in all those hedge funds etc etc. 12 months on, its a credit crunch situation and there is just no cash around for banks to survive. The fed is even having to intervene to help pump cash into the industry. So my question is, who is hiding those billions of $$$ under their bed? is it somewhere in asia?
I read an article in WSJ maybe a few weeks ago how aside from the financial sector and maybe a few others, a lot of retailers (i.e. walmart) have been doing pretty solid in the last 6 months and are hoarding away the cash. I don’t know if it means they will be buying up some troubled firms or what, but I also know Warren Buffett is waiting in the woods to snatch up some trophies.
I spent it on stupid s^&t. Darn.
mto1985 Wrote: ------------------------------------------------------- > I read an article in WSJ maybe a few weeks ago how > aside from the financial sector and maybe a few > others, a lot of retailers (i.e. walmart) have > been doing pretty solid in the last 6 months and > are hoarding away the cash. I don’t know if it > means they will be buying up some troubled firms > or what, but I also know Warren Buffett is waiting > in the woods to snatch up some trophies. maybe i should start looking for a job at walmart…
double post
The discounters are def. the one’s making out well in this economy b/c the consumers mindset has changed and they are def getting cash as well as US exporters that are loving this weaker US dollar. A lot of local and regular savings banks soon should be getting cash b/c of people pulling out of the markets but then again the interest they earn isn’t much of an incentive so the majority of it prob will go overseas. To my knowledge consumers are sitting on their cash and from a financial/banking perspective many companies still have cash they just have a sh*tload of subprime or other types of debt that no one else wants as collateral (a la Bear Stearns). JPM had to go to the discount window for them…
read somehwere… the middle east has enriched nearly a trillion dollars cause of this mess and through rising oil prices. They can at the most spend 100-200 billion on their own economy. The remaining 900-800 billion they will eventually invest…mostly into US and Europe…so money WILL flow back to US and Europe… The big question is WHEN!!!
sid3699 Wrote: ------------------------------------------------------- > read somehwere… the middle east has enriched > nearly a trillion dollars cause of this mess and > through rising oil prices. They can at the most > spend 100-200 billion on their own economy. The > remaining 900-800 billion they will eventually > invest…mostly into US and Europe…so money WILL > flow back to US and Europe… > > The big question is WHEN!!! US(D) has taken a big beating from a confidence standpoint - the 800 - 900 billion will flow into commodities, Asia, Europe and US in that order.