With all these corporation sitting on so much cash and loaned money being very cheap, I wonder if we will see a lot more companies buying other corporations.
With the bad economy, it is hard to grow, unless you buy new companies or competitors. I know my company is looking to buy similar firms.
Downside? I bet you will see more layoffs. We have bought companies in other states and combined a lot of functions like HR and accounting. We have increased hiring locally but have shut down at least one facility in another state.
Thomas Sowell: There are no solutions, just trade-offs.
Perhaps, but most companies are holding onto their cash right now waiting for a clearer regulatory and tax picture to emerge before deciding if/when/where to spend that money. Plus they have a safe avenue of investing that money until that clearer picture emerges - the DC debt. As long as DC continues with $1.5 Trillion deficits, they can park their cash in Treasury notes at virtually no risk and wait for the murky waters to clear.
Unintended consequence of cheap money? Consolidation, buyouts, mergers and loss of jobs? Companies are also spending money buying up patents, I think Google was one.
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From what I can see, very little--if any--jobs are going to be lost here. Google wanted Motorola Mobility so they have the manufacturing process under their own roof, and all of the patents that go with it. They get manufacturing and patent-protection from lawsuits, and all of the intellectual property all in one... I wouldn't assume that that means job loss.
