[lbo-talk] A trader's view of the coming depression

SA s11131978 at gmail.com
Tue Sep 27 07:08:26 PDT 2011


On 9/27/2011 9:50 AM, Doug Henwood wrote:


> Household assets are about $72 trillion - $23 trillion tangible (mostly housing) and $49 trillion financial. Nonfinancial corps assets are around $29 trillion - $14 trillion tangible, $15 trillion financial. So HH assets are more than twice corporate - financial alone, more than 3x.

I think the problem with using the corp "financial assets" line is that it's dominated by receivables and "miscellaneous assets," neither of which is cash-like. In neither case could the corp easily liquidate the asset and spend it, the way it could with a MM account or repo. (Of course, some receivables can be sold into the securitization machine for cash, but if they're sold they won't show up on the balance sheet as receivables.) When I said corp cash was 5x hhld cash, I was sort of eyeballing/subtracting the receivables and misc. assets.

SA



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