(Businessweek) — With U.S. companies sitting on an estimated $1.8 trillion in cash, it raises the question: Why aren’t they deploying more of their hoard to expand their businesses? Or one might channel John Maynard Keynes to ask: Where have the “animal spirits” gone? Although capital spending in the U.S. is up 12 percent since the lows of early 2009, it’s still running $88 billion below the peak of $1.34 trillion reached in the first quarter of 2008, says Joseph LaVorgna, chief U.S. economist at Deutsche Bank (DB).
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