They also use forex reserves as rainy day funds to help countries during times of national or international economic crises.
Corporate titans, including those with stellar ratings, are drawing on revolving bank-credit lines to secure rainy day funds until the credit markets calm down.
An enormous lesson for both the individual grantor and the charity is that both need rainy day funds to cushion sharp, unexpected contractions similar to what we are passing through now.
Although it has had an impressive track record of growth, its ability to turn a profit is still a question mark and it is likely that the company will need rainy day funds in the future.
Unfortunately, their penchant for accumulating rainy-day funds was only reinforced by the tumult of the recession.
There ought to be plenty of rainy-day funds to dip into now that times are tough.
For now, states can close the resulting budget gaps by raiding rainy-day funds.
ECONOMIST: State fiscal crises may deepen America's downturn
Municipalities should adopt better accounting standards, dole out saner pensions and start rainy-day funds all of which might help in recessions yet to come.
ECONOMIST: The straits of cities and counties are hurting the recovery
Many states, such as Texas and Oklahoma, use the tax revenues from oil and gas to fund state education projects, health care obligations and rainy-day funds.
Demand is the easy part, after which the true goal of economic policy should be to stimulate saving so that entrepreneurs have access to capital and individuals have funds for a rainy day.
Paulson said the remaining TARP funds would be reserved for a rainy day.
However, argues Svetlana Tsalik of the Open Society, a group financed by George Soros, a well-known investor and philanthropist, these funds can help to sterilise capital inflows and (in theory) to save for a rainy day.
ECONOMIST: What might oil producers do with all that extra cash?
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