Where is the US economy headed?

That's what they all say Cyclo at your stage. It just means you haven't been invited yet.

You diminish yourself.

Companies have been socking cash away for a rainy day since the financial crisis. Now, it's pouring—and companies feel prepared.

Non-financial companies in the Standard & Poor's 500-stock index were holding $1.12 trillion in cash and short-term investments in their most recent reports, up 59% from $703 billion in the third quarter of 2008. Those stockpiles are providing companies with a cushion of comfort amid the economic and market turmoil.

Yet the validation of companies' conservatism may ultimately be bad news for the economy. The recent turmoil affirms executives' caution, and may prompt some to curb spending and bolster their ...

The recent turmoil affirms executives' caution, and may prompt some to curb spending and bolster their ...

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The recent turmoil affirms executives' caution, and may prompt some to curb spending and bolster their ...

They're waiting for us (we the people as represented by our government) to get our collective **** together before they wade back into the pond.

I disagree, but that's ok. Why would someone choose to expand in today's climate? We aren't talking about hiring for existing demand. There is none. We're talking about expansionary hiring into new areas of R&D.

... the Republicans in gov't don't give a **** about anything getting better until they have someone in the WH.

The real estate market is already in the deepest depression in modern U.S. history. If you think it can’t get any worse, think again.

In several cities, the real estate market is about to drop even more. Home values in many of those cities, such as Las Vegas, have already collapsed as unemployment has shot higher. And with no hope of quick recovery, housing prices are expected to continue to fall. 24/7 Wall St. identified ten housing markets that are expected to drop by at least another 10 percent by 2012. Full list

The hope is that recent signs of a weakening economy, the stock market sell-off and the loss of AAA credit status will provide a new sense of urgency to the committee's work. But some business executives remain skeptical that Congress and the White House will be able to fashion a package that gets the economy moving again.

"The uncertainty is not the problem, it's the certainty that's the problem," said Harvey Golub, former American Express CEO and former AIG Chairman. "We know that until the next presidential election in this country we're going to pursue policies that will be different from the rhetoric. We will say what we want to do is grow GDP and create jobs, but the policies that will be put in place will do the opposite."

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That uncertainty — more than the cuts themselves — could weigh most heavily on growth. The longer government policies continue to shift, the longer it will take to get the economy moving again, according to Wells Fargo chief economist John Silvia.

"You have a payroll tax cut and then you don't. You don't know if you are going to have the Bush tax cuts or not. You have Cash For Clunkers and then you don't. You can't do that," he said. "You are asking people to make permanent decisions in terms of hiring and spending money, and then you give all these temporary policy moves. It doesn't work that way."
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Only in that he's spent his career on that side of the fence. Rev asked about companies sitting on cash and not hiring. He's giving a valid answer from the business perspective.