29 companies, including Bank of America, JP Morgan Chase, Morgan Stanley, Goldman Sachs, General Electric, and others, had more cash in their coffers than the United States Treasury, as of July 13th. As ThinkProgress points out:
It’s a stark reminder that if Congress refuses to raise the debt ceiling, the government won’t have nearly enough money to continue funding essential services and programs.
The numbers effectively rebut Republican claims that the government has plenty of money to keep funding essential services while paying down its debt. It also belies GOP claims that companies are in need of lower corporate taxes. American corporations have a record amount of cash — they are just refusing to invest domestically while lobbying for tax breaks.
The chart, from Zero Hedge, shows these companies as holding over $39 billion:
As was pointed out yesterday, courtesy of a blistering $80 billion cash burn in the first half of July, Tim Geithner managed to reduce Treasury cash balances from $130 billion to $39 billion. Granted this number will increase next week after this week’s $66 billion in Treasury auctions settle, only to drop once again when another batch of Bills mature and are not rolled. So in response to various inquiries we present the 29 public companies that hold more cash than the US Treasury does as of July 13 (Geithner is tied with Google at $39 billion). Not very surprising, two of the top 3 are Chinese companies. The third? Bank of America… Surely there is a good reason why BAC is preparing for rainy days.
And we wonder where all of the wealth is disappearing to (along with the jobs), why we can’t fund our schools, why our infrastructure is falling to pieces; but yes, let’s give them further tax breaks, leave all their tax loopholes open and hope for the best.
‘Cause, you know, our current economic model of no incoming revenue from the wealthiest among us is magic!