Cash is normally a predictable, even boring market, making it a safe bet under normal conditions. Photo: Xinhua
Kerry Craig
Opinion

Opinion

Macroscope by Kerry Craig

Sudden shift in the normally calm US cash markets doesn’t signal a new credit crunch

  • The recent ‘pipe blockage’ in the US financial system caused fears of a bigger problem with the Fed’s balance sheet. But, sometimes supply and demand don’t match and, on this occasion, the mismatch was simply greater than expected and was fixed

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Cash is normally a predictable, even boring market, making it a safe bet under normal conditions. Photo: Xinhua
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In Japan, for instance, corporate cash balances are bigger than the capitalisation of the Tokyo Stock Exchange, which, until April this year, was the second most valuable stock market in Asia. Photo: Reuters
Anthony Rowley
Opinion

Opinion

Macroscope by Anthony Rowley

With a global recession looming, will cash-rich corporations swoop to the rescue?

  • Central banks and governments are stretched to the limit while big businesses sit on cash mountains that dwarf national economies. In a downturn, they can make investments and retain staff to shore up consumption and the economy. But will they do it?

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In Japan, for instance, corporate cash balances are bigger than the capitalisation of the Tokyo Stock Exchange, which, until April this year, was the second most valuable stock market in Asia. Photo: Reuters
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