Could borrow $2 billion, but not…

“I could borrow $2 billion tomorrow for 3 1/2 percent. But what am I going to do with it?”   David Speer, CEO of Illinois Tool Works.

Further words of wisdom from Mr. Speer: “It took us a decade to get in the ditch we are in. There isn’t going to be instant gratification to get us out of it. We’re going to have to get used to a lower growth economy, and that is going to be a big adjustment for all of us.” 


Sarcasm aside, the bottom line seems to be: why invest when there is excess capacity in most industries and an excess supply in housing?  Excess capacity, or lack of demand, fuels a scarcity of new investment… a key reason for the sluggish recovery. Housing prices are not expected to return to pre-bust levels for some time… indeed, some say never again.

1 comment

  1. I will have to check with my web master… sorry for the inconvenience. I’ll get back to you.

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