Companies are using debt to fund payouts for different reasons. “I think what you’re seeing is there’s largely a mismatch with significant cash balances that are overseas. Companies won’t repatriate that money given the tax implications. While there is cash there it’s not really useable for a dividend or share repurchase,” he said.
At the same time, credit quality is peaking, says Levington. “What I mean is you’re going to see companies use leverage in 2013, whether it’s in the form of cash to fund dividends, or more likely for acquisitions and share repurchases. That will be a trend that you’ll see throughout the year,” he said.
Personally I hope there is no agreement reached, because any compromise will likely be an increase in spending, with promises for less in the future. And we all know congress cannot keep any future “less spending” promises.
The only thing to drop off of the “fiscal cliff” is spending. Lets have at it!
While I won’t agree with all the areas to be automatically cut, it WILL do what congress cannot.
It is a pipe dream that the Feds will curtail spending. We cannot even control spending locally, Check out County Budget]County Pass Higher Taxes[/url]. Washington County’s tax rate is not $ 2.88 per thousand; about 80 cents higher than our neighbors in Ozaukee and Waukesha ... and Waukesha does not even have a sales tax.
We train ‘um here and send them there!
A working link is:
Well, Sandi, personal income will take a hit too, what with the automatic return of pre-President Bush tax levels.
I still think describing it as a “cliff” is a bit hyperbolic, but I’m more cynical than most people
The fiscal cliff is certainly preferrable to another punt.
Well, Sandi, personal income will take a hit too
Yes VA but far preferable to the unrestricted rise in spending far into the future.