In case there were any doubts we have this from CBS MoneyWatch:
The dividend push comes as companies sit on an ever-growing pile of cash, with non-financial companies in the S&P 500 holding $1 trillion in cash or like assets at the end of the second quarter, according to Banc of America Securities LLC analyst Jeffrey Rosenberg. By one estimate, that cash level could rise to $2 trillion by the end of the year.
And this from Economix:
“Not only are we seeing a tremendous V-shaped recovery in corporate profits, but we are in fact seeing the biggest corporate profit recovery ever,” said Joseph A. LaVorgna, the chief United States economist at Deutsche Bank. “That means that the equity market is dirt cheap. That also means that companies have more money than they know what to do with.” Meanwhile,…. unemployment rate is still stuck at 9.6 percent.
Of course the best evidence for excess money demand is the sustained decline in the velocity of money: