Moody’s Investor Service report says corporations sitting on cash reserves worth billions
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While unemployment in the United States rose and the economy plunged, the profits for some corporations - including major banks - increased.The US Bureau of Labor Statistics reports that the official jobless rate is still more than nine percent after reaching nearly 11 percent early this year. Meanwhile, some of the biggest companies in the US are sitting on large cash reserves. A report by Moody’s Investor Service says non-financial U.S. companies are holding $1 trillion in cash - about 30 percent more reserves than they had in 2008 - yet, they don’t plan on spending to expand their business or hire employees. Companies like Cisco Systems, Ford and Microsoft are waiting for greater economic certainty. Michael Lawson reports.