Corporate Cash At A 50-Year High...

The cash and other liquid assets held by nonfinancial U.S. corporations has hit its highest level since 1963, which is a good news / bad news situation.

Nonfinancial companies are holding $1.9 trillion in cash, or 7% of all their assets, which is the highest level since 1963, according to the Wall Street Journal.

On the one hand, that’s a very healthy development as it reflects a successful round of cost-cutting and higher profits in reaction to the economic crisis.

On the other hand, it implies a troubling lack of confidence in the recovery, since these assets are not being deployed for hiring and expansion purposes.