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General Electric Company Message Board

  • zueseschariott zueseschariott Apr 8, 2002 11:42 PM Flag

    GE as the Dogs Tail - CDO as the Head

    In the Internet boom GE was one of many finance companies including CDO to fund many startup companies.. The GE balance sheet is ripe with creditors that are as insolvent as Comdisco's customer base.

    Here is the one difference.. GE is a larger animial thus the body of the DOG can obscure the tail.

    I am certain that the Tail (the bad loans) are starting to become visible.

    With GE goes the market thus I think Thursday or shortly thereafter will be a major rekoning.

    If GE posts good numbers then the talk will be about the lack of quality of those numbers. If GE posts bad numbers the effect will be the same. Expect the market to react poorly in either case.

    The news media is still pumping stocks;

    1. The CEO of 3M talked about his company becoming more efficent rather than increasing sales as an indicator of an upturn vis a vis no upturn exists.

    2. The oil problem was not so much Iraq as a bump in the road with S. American production. This item did not get any press.

    In short the scam of our stock market can not be stoked indefinitly.

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