Hitchhiker in the Corner Office

In a recent New York Times article, companies borrow at low rates, but don’t spend. Companies like IBM, Microsoft and Pepsi-Co are benefiting from very cheap credit. But unfortunately what was suppose to spur growth and development and eventually jobs, has turned into a way for corporations to shore up savings on the cheap. Instead of spending money on job creation or factories, many companies are holding on to the cash and buying back shares. This may be great for the balance sheet, but it is not getting unemployment down.

I think many knew that this economic recovery was going to be jobless one but at some point there needs to be a pathway to getting the unemployment rate down. The Oil and Gas Industry is moving in the right direction, but many of our clients are very cautious. With many organizations looking to hire in the Petroleum Industry today, these same jobs could vanish very quickly as well.

Do you think that the US economy will ever get back?