Joe Gelet

General Electric: Genuine Risk of Collapse?

GE is integrated in the system at every angle. We shouldn't blame individual companies who have widespread exposure to every facet of the system, such as GE had. The system is what is having problems, not individual companies. Also don't forget all these companies are supported by consumers, they don't exist in a bubble. They are catering to client demands. If clients had demanded fast trains and hydroponic farming you bet GE would have supplied it.

GE's mistake was getting involved in the finance business! It reminds me of a company we had researched that owned the technology behind an FX trading system and 'patents on ancient Chinese health secrets'. i.e. What business are you in? We sell investments, couches, and also a fine wine.

Maybe companies will start doing what they do best. GE was a great manufacture of industrial equipment (light bulbs, medical instrumentation, engines, etc.), but a less than average bank. Overall, this crisis will be a good thing for the economy although it will be painful.