that cash empowerment allows a corporation: (so a short term* benefit is reaped for a shareholder via dividend)
1st many times M&A (job losses by duplicate process dissolvement)
2nd cheaper labor (break unions and go to 3rd worlds)
3rd abandon in place old processes and structures /create new (maybe with a plan to pass onto another sucker**)

once cash is invested in their corporate hands you are subject to their whims .. and may be stuck in there for some time via market fluctuations .. why we encourage/allow survival of the biggest fish .. when we are all little fish?

* short term meaning – if the popultion does not die off of natural causes before the cutbacks are absorbed .. social services will need to be provided since we don’t allow euthanasia except by war in our culture

** a sucker looking to play against the big fish (may loose then dumping the stuff via bankruptcy or super fund cleanup)

The market was plummeting following the failure of Lehman, the run on the money market funds and the imminent failure of the other banks and iBanks. A more “market solutions!!!” President would have discouraged his Treasury Secretary from joining Mr. Bernanke in the exceptional bailout that has ensued.

Like it or hate it (I’m warily relieved), Administration policy gets a big chunk of the credit this time.

True, but here in the US we’re not very smart. We only invest in propping up diseased banks, house prices and other overvalued assets and banker bonuses, rather than clean energy, science and engineering . This society is rotten to the core, and we will not reach the bottom for a long time, until the Tyranny of the Incompetent comes to an end.

Ask the Japanese.

you should read a number of posts by Mish, i agree with him that inflation is not much of a risk without economic growth.

short term inflation due to speculation/trade war/cartel decisions is definitely possible in commodities… but long term i believe you can only hoard so much….then what? if there is no consumption who will support those high prices?

USD getting devalued is more worse for ROW, since they own majority of the $50 trillion(or more) of debt by USA. we will be happy to take 30% discount on that. and we will be then happy to print more and pay them those dollars.

not to mention our export will get better….local manufacturing will be competitive compared to imports..

If i was obama….i will be silently promoting investment in commodities (and stockpiling them like china).

only problem is these things need to be done in a orderly fashion….china has been very smart in investing in commodities last 18 months, now only if they can give more disposable income to their citizens….and start local consumption, they wont have to send real stuff for paper $s.

That gets much closer to the truth and is the missing ingredient that is ignored or not known by these “cash on the sidelines” fools.

http://www.annaly.com/blog/?p=520

it will be a natural end to the shenanigans (CEO pay, corp retreats, corp jets, etc etc etc) maybe even lobby power