Mohacsy's Safe Portfolio Member Forum

[n4807g]

I think the assumption that corporate America would automatically reinvest overseas cash in plant and equipment was always a specious argument. Borrowing costs have been at record lows for years and corporate America could have borrowed money at any point and invested in plant and equipment. What borrowing was done quite often went to stock repurchase. Probably not the best use of cash, but from the boardroom the view is always different. Most people have forgotten that our economy isn't immune from recessions and a pretty good argument can be made that these "good times" have been engineered by central bank policy and if the global economy jumps the track, we are ill prepared for the disaster it would create. A more prudent use of that cash would probably be retiring debt.