Robert Prechter recently writes some interesting thoughts about cash:
"Is cash a bubble? The answer is no. There are some important distinctions that explain why. For one thing, a bubble requires an over-extension of credit to purchase investments for profit, and there's no way to borrow your way to a big position in cash. If there were, it wouldn't be cash. So, by definition, cash is not exposed to the margin calls and forced selling that create the stunning bust of every bubble. Another reason that cash cannot be the focus of a bubble is that people don't buy it hoping to resell it to someone else at a higher price. They buy it because they think it is worth exactly what it is. Cash is about keeping what you have; a bubble is about getting rich. The rush for cash is the boom in conservatism forecasted in 'Conquer The Crash'; it should persist for years, just like the mania that preceded it."
Robert Prechter - January 2009