Joulie

Does Warren Buffett Think Goldman Is More Creditworthy Than GE?

Not coincidentally, today the Senate approved the Indian nuclear deal (bringing India into the nuclear club, a controversy), making GE one of the major suppliers of the what -- 18? or so nuclear power plants for India. I see that piece of legislation as very relevant to Mr. Buffet's decision.

It looks like BH/Mr. Buffet made GE capital ugliness a non-issue so that GE can move on with rebuilding the infrastructure of most of the world, financed by GS.

(There is an anecdote about Mr. Buffet wanting to "own a bridge" because everyone had to use it - this reminds me of that).(Except times a zillion).

At any rate, this seems to put a floor on GE's stock price at $22.84 at the end of 5 years time, or before (the strike price for the $3B in warrants).