I saw/heard a report today that manufacturers cut investment spending on equipment by 50% in Q2, with large drops in Oct and Nov. Why? Uncertainty (fiscal cliff, taxes, and health care costs).
There is no way the economy can ever get growing soon because of all the fluidity in US policy that floats around DC. No pointing at any party, because the Exec branch, and both houses of Congress must be in concert on these matters, to gain confidence again.
The other part of the story is that the cash reserves continue to build. The question is how will those reserves be drawn down, ... productive paths, or overhead?