Strike Two

I am tired of Mr. Ratigan sort of ranting in multiple directions with regards to the availability of capital in this country. He has spent weeks, if not months, just ranting and raving about how all the banks (or, at least, the big Wall Street banks) "steal" all the money and that is why there is no capital in the system, no investment going on and, hence, no jobs being created.

He is still arguing that point (actually, it is somewhat reminiscent of Ross Perot and the "giant sucking sound" from the NAFTA debate of 1992 as he talks of the banks sucking all the money out of the backdoor of the financial system); however, he is now concurrently latched onto the idea that many corporations are hoarding cash*.

So, I guess the situation if you follow his narrative is the Treasury/Fed is just printing money out of thin air and flooding the system with money but that there is no money available for businesses to invest in their innovative ideas while other corporations will not spend any money because there are worries about new regulations or something.

It's quite a portrait he paints! However...

...this brief interaction between Peter Morici and Richard Quest from Your Money on CNN on Sunday (7/18) will probably give a better understanding of what is going on in 30 seconds than watching a week worth of Ratigan:

PM: To create jobs, businesses need customers and capital. The customer side? There's just not enough demand for what Americans make.

RQ: Peter may be right that there's an imbalance in the US-China relationship but there's not a lot the U.S. can do about it as long as it keeps sucking in those imports.

* Seriously, this is a link worth clicking. It's funny because I found this link after referencing the comment from Peter Morici. I was just adding some references to the post as I typically do and I thought the hoarding cash argument could be linked because when Ratigan shows his chart of corporations hoarding cash, he lists his source as Barry Ritholtz, author of Bailout Nation (a tremendous book by the way), so I google "Barry Ritholtz hoarding cash" and expect to find a post about the problems of corporations hoarding cash and how the Obama administration is impeding the recovery - but that is not what it is at all!