zerohedge.com / by Tyler Durden / 04/30/2014 10:27 -0400
“Record corporate cash”…”Record corporate cash”… “Record corporate cash”
That pretty much covers most of the
conversation on prime time financial media and TV stations when
discussing corporate balance sheets.
There is, however, one big problem with that mantra. As Zero Hedge first showed in January with “Corporations Have Record Cash: They Also Have Record-er Debt, As Net Leverage Soars 15% Above Its 2008 Peak”
companies indeed have tons of cash. What isn’t discussed is where that
cash came from. The answer: debt. Because while companies have record
cash, they have recorder-er debt.
Today, we are happy that more are starting to
notice this simple math problem. Here is Deutsche Bank’s Torsten Slok
who is the latest to be struck by this “revelation”.
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