Carney takes a swipe at companies sitting on ‘dead money’

Bank of Canada governor wants corporations to invest productively during economic downturn


Bank of Canada Governor Mark Carney has accused Canadian corporations of companies of sitting on “dead money” in the economic downturn, money that he says should either be invested productively or returned.

Mr. Carney acknowledged that companies are wary of investing as debt problems plague Europe and the United States, but said their caution was “excessive”.

It’s unusual for a central banker to criticize the country’s corporations, and some executives have responded by saying that being cautious is both prudent and necessary in this economic climate.

Mr. Carney, however, says Canadian corporations are not doing enough to become a competitive force in the global economy.

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Carney takes a swipe at companies sitting on ‘dead money’

  1. With deficits at various levels of givernment, I think it is prudent for corporatioins to hold on to cash. Investment can only be encouraged in a steady economy which does not seem to be existing right now. When statistics show the debt load of individuals in Canada, where is our country headed. I hope not in the direction of the U.S. and Europe. I will admit I tend to lean on the conservative side of caution, but results show this outlook has its advantages.

  2. The corporate welfare bums want the taxpayer to fund any business expansion, while they sit on their bags of cash. Why? Because experience has shown that if they hold out their hand, governments WILL throw tax dollars at them with no risk to themselves. After a year or two they can pack up and leave for greener pastures. Example: The auto industry in Ontario.

  3. Canadian business has always done this….no matter what is going on in the economy.

    I don’t know why Carney, Flaherty and Harper are surprised by it…..unless they really believed all that Ayn Rand swashbuckling-businessman crap.

  4. The ole wrench in trickle down economics. The big fellas plugged the drain.
    There’s saving for a rainy day and then there’s being a miser.

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