Companies like Microsoft are raising billions of dollars by issuing bonds at ultra-low interest rates, but few of them are actually spending the money on new factories, equipment or jobs. Instead, they are stockpiling the cash until the economy improves.
The development presents something of a chicken-and-egg situation: Corporations keep saving, waiting for the economy to perk up — but the economy is unlikely to perk up if corporations keep saving.
This situation underscores the limits of Washington policy makers’ power to stimulate the economy. The Federal Reserve has held official interest rates near zero for almost two years, which allows corporations to sell bonds with only slightly higher returns — even below 1 percent. But most companies are not doing what the easy monetary policy was intended to get them to do: invest and create jobs.
http://www.nytimes.com/2010/10/04/business/04borrow.html?_r=1&scp=1&sq=Cheap%20Debt%20for%20Corporations%20Fails%20to%20Spur%20Economy&st=cseNow this makes me angry really angry those greedy bastards could hav e been hiring for some time now...I expect they will start after the election.....
Except, Republicans didn't love it. Senate Majority Whip Dick Durbin (D-Ill.) led the floor fight this week, and was even willing to accept a compromise: instead of a year-long extension that Democrats had requested, Durbin sought a three-month extension, at a cost of just $500 million, in order to keep the fund alive through the end of the year. Sen. Mike Enzi (R-Wyo.) refused to allow it.
http://www.ucomparehealthcare.com/drs/report2.html?L=1868323622383808220849&R=408DeG755DKx2ED6HQ2cJL6h4&I=18683236REPUBLICANS KEEP ASKING " Where are the jobs" all the while knowing they are the ones responsible for the fact that jobs are scarce.....