U.S. non-financial companies held a record $931 billion of checking and savings deposits as of March 31, according to the Federal Reserve flow-of-funds reports. Deposits more than doubled from June 2009, when the latest recession ended, as the economy grew 6.3 percent.
Its a bit of the Recency effect — Cash is rising as companies guard against the risk of another slump, with management looking back towards the 2008-09 crash.
Checking accounts held 40 percent of non-financial companies’ deposits at the end of the first quarter, and the other 60 percent was in savings. Deposit figures at the end of the second quarter will be included in the Fed’s next flow-of- funds report, due Sept. 20.
By David Wilson
September 13, 2012
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.