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You do know that the money isn't literally sitting overseas right? It is invested (Apple would be the largest bond fund in the world [1] if they accepted outsid
by jonknee 9y ago
You do know that the money isn't literally sitting overseas right? It is invested (Apple would be the largest bond fund in the world [1] if they accepted outside money). So they'll sell the investments, pay a little tax and then probably do a massive buy back of their shares and a special dividend. A little switching around on paper, but certainly not a stimulus of any sort.
[1] https://www.bloomberg.com/news/articles/2017-05-04/apple-buys-more-company-debt-than-the-world-s-biggest-bond-funds https://www.bloomberg.com/news/articles/2017-05-04/apple-buy...
- WalterBright 9y agoOf course there is no Apple cash hoard, it's all invested. The difference is it being invested in foreign countries, or invested in America.
- jonknee 9y agoThat's not the difference at all, it is invested in corporate debt (much of it from US companies) and giant amounts of US Treasuries. Even the people that manage it do so from the US. The difference is purely in accounting, they keep that money on a different line of their balance sheet and are unable to use it for domestic expenses without paying tax on it. Most of the money isn't going to move at all after they repatriate it (they'll actually sell Treasuries to pay... the Treasury!). No part of "bringing back" the money will result in more money being invested in the US--it's already invested here!
- WalterBright 9y agoIf it will be used for a "domestic expense" then it is being spent into the American economy.