Last I checked this was still a free country. Companies owe donks or anyone else nothing but their paycheck and or what ever was offered and accepted at the time of their employment. People are still free to leave and or look elsewhere for a better offer. They can also start out on their own, becoming a greedy company. Why don’t donks do more of that?
There are other types of assets and liabilities on the balance sheet and many of those assets can be converted to cash.
And does this include the banks which ALWAYS have more debt than cash on their balance sheets, since that is how a functioning bank works.
The fact is that most of the S&P 500 are in the best shape financially then they have been in a LONG TIME. It is not just because they are being conservative but because so many of them have learned to break even during tough times AND can generate positive cash flow in these times.
Except those that are being run by Obama of course . . .
The left is moronic for even bringing up the issue, and clowns like Zakaria just show why they keep losing viewers when they open their mouths or sharpen their pencils.
Companies take on debt because they think they can do something with it. Giving out dividends is usually a sign a company has gotten old and isn’t growing much. And any well run company will hold onto precious little cash since it doesn’t do much good sitting around in a bank account.