U.S. Corporate Balance Sheets Are In Shambles
We have also remarked numerous times that corporations in Europe and the U.S. were saddled with record debt. Again, the carnival barkers only talk of record cash. And as this crisis unfolded we wrote that corporations were once again taking on record debt, not to expand their businesses but to stay afloat thus causing further balance sheet deterioration. In other words, fundamentals coupled with political and Federal Reserve policy has forced corporations to weaken their balance sheets even further than before the first collapse. How fitting is that since major corporations helped create this environment through the corrupt bribery afforded them through corporate personhood. As we have highlighted numerous times:
"Policy does not allow a choice between depression and no depression, but between depression now and a worse depression later: inflation pushed far enough would undoubtedly turn depression into the sham prosperity so familiar from European postwar experience, and would, in the end, lead to a collapse worse than the one it was called in to remedy." -- Joseph Schumpeter
The conclusions of this article are indeed completely accurate. Myths and lies about the state of corporate America are perpetuated because Wall Street is a self-interested lying machine full of crooks and morally-bankrupt evildoers.
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