It is not news that large US banks are hoarding cash. But US businesses (non-banks) are now hoarding cash at an unprecedented rate. The 500 largest nonfinancial companies in the US now hold almost $1T in cash and short term liquid securities on their balance sheets. This is almost 10% of the assets on their balance sheets. They are also paying off debt as fast as possible. But wait. Interest rates are 0, and the only US businesses that have access to credit are the 500 largest companies. Why aren’t they borrowing at historically cheap rates to invest in their companies and build-out their businesses? Don’t they think they can earn a better return on equity than 0% for their shareholders? Answer: Of course they do, but they do not see an economic expansion coming. Instead they see a need to build a safety net. Keep in mind these people thrive on risk taking. Want to bet against them?