> You can deduce that cash on hand harms nobody by doing a thought experiment. This is incorrect. We know from history we know the before, during, and after st

> You can deduce that cash on hand harms nobody by doing a thought experiment. This is incorrect. We know from history we know the before, during, and after states of company finances and the economy as a whole. When companies are not confident in the future they tend to sit on cash reserves versus making their own direct investments. Historically, these direct investments have a benefit for the productive capabilities of the firm. The sin that OP is probably targeting, but I didn't see described, is stock buybacks. If companies are sitting on cash that's one thing, but they can negatively impact their liquidity by buying back stocks with no upside for stakeholders in the long term.