May 18, 2011: WSJ:
Companies Rush to Borrow
Firms Fill Up on Debt Before Fed Closes Door on Easy Credit
In what may be a healthy sign for the U.S. economy, several companies selling debt this week are using the money for expansion, rather than sitting on the cash or refinancing existing debt. That suggests capital expenditures may increase, potentially boosting employment. Some companies are funding acquisitions and share buybacks.
May 16, 2011: WSJ:
Another Season of Hoarders
Recession-scarred companies are holding back from spending—even if they have the cash
"...it's possible that this recession jolted business owners so badly that they've broken the usual cycle. "Because of the depth and severity of this recession, we're rebounding slower," says Ms. Coyne. "That ties to cash hoarding. People are trying to fund their own expansions, be their own bank—that's a change in mindset."
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