[gregoryw]

Corporate savings are high across a broad basket of companies like the S&P500 because the earnings of multinationals are parked in Luxembourg, avoiding US taxes. We've all read about the Double Dutch and other IP licensing schemes that avoid taxes for Google, Apple and others. I personally feel these funds are waiting for a US corporate income tax holiday, perhaps under the guise of creating new jobs and investment domestically. The stock price of companies like Apple has their cash balance as "money good", meaning the market doesn't believe they'll pay tax on the $150 billion parked overseas.

Sam's zero interest rate point is the most salient to the startup world. It forces accredited investors to chase asset classes like technology startups for yield. You also see it in the midwest in oil, gas and other natural resource drilling/mining. These are long term 10 year investments for these investors to park their cash.

[saym]

So, the 0% interest is a catalyst for startup investment? Do institutional investors or big banks directly fund incubators and the like?

I read somewhere recently that global bank income was up 29 billion from last year, does any of that profit come from startup success?

[gregoryw]

Institutionals and investment banks are higher up the chain. Accredited investors serve as front-line angels that fund would-be entrepreneurs, and then the aforementioned parties provide them with liquidity (distribution and marketing of the company's other shares to more sophisticated investors).