Please explain the last statement for the not so bright. Thank you.
“even as corporate cash is at all time highs, corporate debt is just below all time records (and the recent decline in gross debt has only occurred courtesy of banks pushing up stock prices to artificially high levels, which has afforded many with equity refis opportunities to pay down existing debt, as well as asset dispositions). In other words, and this goes to shut up all those “cash on the sidelines” chatterboxes, net debt has barely declined from all time records. In a nutshell: total debt of over $7 trillion versus total cash of $2.6 trillion is still close to the highest net debt gearing in history.”
http://www.zerohedge.com/article/ending-cash-sidelines-fallacy-redux
“Put simply, there is a lot of apparent “cash on the sidelines” because the government and many corporations have issued enormous quantities of new debt, often with short maturities, while other corporations have purchased it. It is an equilibrium. The assets that are held in the right hand represent debt that is owed by the left. You cannot call that pile of short-term marketable securities an asset without calling it a liability. The cash on the sidelines is evidence of debt incurred to fund economic activity that is already in the past. It will remain “on the sidelines” until the debt is retired.”
http://theburningplatform.com/blog/2010/08/09/there-is-no-cash-on-the-sidelines/