GE Really Is In Danger of BK

All the same talking points we heard from WAMU, BSC, LEH, etc., etc., and in the meantime, we find out they have total net debt of 455 billion and 85 billion of exposure o real estate loans where they're the priority lender.

Down, down, down.

Oh, the fear on the faces of CNBC talking heads is palpable and priceless.

 

one thing GE has going for it though is they lend against hard assets, i.e. they can repossess your washing machine or whatever.
Also the lending division is only part of GE, as opposed to banks.

 

every blue chip DOW30 stock that has tanked 70-99% has had its fair number of noble,celebrated market wizards/gurus/cheerleaders explaining how great the co. is and how its time to buy it-only to see the stock drop and 50% in no time...gm bac c aa dow t axp etc...Will GE beat the odds?I dont know.Is that a good bet-NO.Why?...because the strategy is flawed where it has failed in every case in the last year and you would have been wiped out in each case and would have no money left to play the next 'great value'/unfairly battered blue chip stock.

The best strategy in a down market is too short and unless you are really good at that just forget it.

The best investment for 99% of people in a bear is to NOT itrade/invest in stocks.

 

"The best investment for 99% of people in a bear is to NOT itrade/invest in stocks"

it really is that simple

"The customer would finish the tale of his perplexity and then ask: ‘What do you think I ought to do?’

Old Turkey would cock his head to one side, contemplate his fellow customer with a fatherly smile, and finally he would say very impressively, ‘You know, it’s a bull market!’

Time and again I heard him say, ‘Well, this is a bull market, you know!’ as though he were giving to you a priceless talisman wrapped up in a million-dollar accident-insurance policy. And of course I did not get his meaning

I think it was a long step forward in my trading education when I realized at last that when Old Turkey kept on telling the other customers, ‘Well you know this is a bull market!’ he really meant to tell them that the big money was not in the individual fluctuations but in the main movements - that is in sizing up the entire market and its trend.
"

 

ahhhh,yes...my favorite book...and the paragraph that follows that one and the next few are my favorite of the whole book...but that whole book is filled with gems...

 

1. Banks lend against hard assets (houses/cars).

2. Lending divsion is a big division of GE. It was able to mask its losses because it's not a bank and therefore, it is not required to mark-to-market.

 

GE so bad, I just don't understand why Wells Fargo, JP morgan and the like have been loading up on GE stock.

anyone care to share their opinions ?

 

I'm sure Rick Santelli will sit this one out if GE gets bailed out

 

GE is a complete fraud of a business. If you are interested in some research on this company look up how they use their financial division to prop up the profits in all their other divisions. The have manipulated their earnings since the early days of Jack Welch. Take away thier finance division and they are a completely different company. For the past few decades they have used the commercial paper markets to "transfer" earnings from their financial division to their other divisions through little accounting tricks. Funny how when these tricks are no longer available they can no longer make their earnings.

The upside to GE going BK is CNBC might go off the air. Chant along with me...."GE to ZERO, GE to ZERO!!!"

 

the earnings smoothing they were doing is not the same as fraud