gabe borenstein

GE: Immelt Gets Welched

It appears that Mr.Immelt ,underestimated the impact of the "subprime "debacle on nthe G.E's earning.Nothing to worry about as every CEO of every financial institution did the same.Little criticism from the former CEO is not the worst that could have happened.The G.E is well diversified company and is well positioned for the record recovery in the period ahead .The "financial "crisis in the U.S is almost over.Any investor/hedge fund short the financial sector is taking on the FED and the ECB.Central banks do not have trading P&L but a mandate to stabilize the economy.With some further accomodation from the FED,an incredible business conducive environment is created .Recession ,the word frequenty used ,is a reflection of the market psychology not a reality.Both Dow and he NASDAQ are heading for the record high and the G.E shares will ascent to a new high.To the skeptics ,I will say the following -In June of 2005 I have discussed the economic risks which we are dealing with today,iwith Mark Gilbert of Bloomberg News(London).My opinion was met with a broad based skepticism.On September 18 ,2007 , I have expressed a warning about pending "sub-prime" debacle on the Brian Sullivan show (bloomberg TV),again my analysis met with a great degree of skepticism as the market paranoia grips the market ,I believe that the U.S economy is poised for a record rebound and companies such as G.E will eventually lead the rally.I am sure for now my analysis /convictions are met with skepticism again -but I am sure that my opinions will be proven to be correct.