What to Do With Investors’ Growing Cash Piles?

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Feb. 26 (Bloomberg) -- Jed Kolko, chief economist at Trulia.com and Joel Kurtzman, author of “Unleashing the Second American Century,” discuss the amount of cash waiting on the sidelines and how it should be used on Bloomberg Television’s “Bloomberg Surveillance.”



kurtzman does not mince any words about and we will talk about that in the hour.

It is a moment of cash.

We are up to our eyeballs in cash.

To start with housing, jed, this is that to roll over into housing, doesn't it?

In the corporate world, we have got cash, and it ends up helping us.

We are at a point in the housing recovery where we are trying to switch tracks from a very investor-driven year to a price increases, to hopefully getting it more toward house colts, looking to rent or buy household, rent or buy how things for themselves.

But ultimately depends on jobs and income.

Right now for young adults, the jobs are so pretty weak.

They're not getting back to work, there are jobs that look a lot closer to the worst of the recession than normal.

Wire institutional investors no longer so active?

The biggest reason is that prices have risen.

So those who are looking to buy homes and rent amount, the math is less good.

Also, fewer people are looking to rent single-family homes now that much of the foreclosure prices -- crisis is behind us.

Can you quantify how many homes nationally were actually taken in by large institutional investors like pimco?

It is not mostly the large investors.

When we talk about the single- family rentals, that has been an increase of about 4 million homes during the course of the recession as part of the recovery.

People can get a pretty small share of the institutional investors, is a whole range of investors.

Rice 4 million homes held by financial owners rather than people who actually want to live there.

That is right.

We're going to talk about this throughout the hour, but one of your great themes, one of your optimism is all of the cash so we have.

Constructive for jamie dimon to increase the dividend or should he go out and buy a new bank?

I think you should buy a new bank.

We have $4.4 trillion approximately in corporate cash that is not being spent, it is not being invested.

You get some headlines about this acquisition or this merger, but it is really a very small share.

Plus, the banks are just flush with cash america lending as much as they should've.

Wednesday you blame carl levin?

I do.

I don't think it is carl levin.

I think it is in an ornament -- it is an inordinate amount of confusion and people are still afraid.

It is going to be a really interesting our here.

A lot of things centered around -- what do we do with all this cash?

Scarlet fu has company news.

State politicians are targeting google blast.

Lawmakers have introduced bills to ban or limit the use of the glasses by drivers.

Politicians are worried about drivers watching videos or other contents while behind the wheel.

Global has hired a lobbyists to make its -- google has hired lobbyists to make its case.

And ibm had 41,212 employees, a .7% drop.

The last time the workforce shrank was back in 2002. the employee reduction comes as ibm tries to break a string of seven straight quarters of

This text has been automatically generated. It may not be 100% accurate.


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