[skoczko]

Here's what I don't get: this article claims that big (since that's what matters for stock market index levels) business sits on a mountain of debt. At the same time many economists (e.g Yanis Varoufakis) claim that big business sit on mountains of cash kept in tax heavens rather that "working" for the benefit of the economy. Which way is it and are there any confirmed statistics to check it?

[zyang]

Both. Racking up domestic debt using offshore cash as collateral. It's like getting a low interest loan using your 401k.

[skoczko]

Ok, thanks. Then the premise of this article is even weaker. Companies do generate huge profits albeit most of the hidden through accounting engineering. It's more likely that the inflated stock prices represent the actual "value".

[lotsofpulp]

And a lack of better places to put the money.