Companies Still Hoarding Tons of Cash

Economix:

American companies are still sitting on mountains of cash, according to a new report from the Federal Reserve.

The Fed’s quarterly Flow of Funds report, released today with data for the second quarter of 2010, found that total credit grew for the first time in over a year, mainly because the federal government increased its borrowing. Consumers, however, continue to deleverage: Net household sector borrowing has fallen for eight consecutive quarters.