Missing: $496.5 Billion in Corporate Cash

You may have missed this fascinating Real Time Economics article (Corporations Not Hoarding Cash) buried at 5am Saturday morning in the WSJ, but here it is:

In the Federal Reserve quarterly “Z1 flow of funds” report released late this past week, there was a slight discrepancy in the amount of corporate cash in Q1.

It was “up to” $1.74 trillion dollars.

And by up to, I mean down from $2.23 trillion dollars.

Did this money actually go missing? From the Fed report, its not clear whether or not this based on a significant accounting revision from recent quarters — meaning it never was really there in the first place. Alternatively, the money actually was pent, and corporate America added an additional half a trillion dollars in economic activity.

I suspect its the former . . .

Whoops! Where did I put that half trillion dollars?

Chart courtesy of WSJ

Number of the Week: Corporations Not Hoarding Cash
Ben Casselman
Real Time Economics, June 9, 2012

This post originally appeared at The Big Picture and is posted with permission.

3 Responses to "Missing: $496.5 Billion in Corporate Cash"

  1. Don Peacock   June 10, 2012 at 5:21 pm

    maybe our A G could catch a crook or 2…or not

  2. terry   June 11, 2012 at 8:25 am

    crooks don't catch crooks

  3. R. Coutinho   June 12, 2012 at 9:35 pm

    Ouch! My jaw hitting the floor actually hurts.