pungent

Earth to GE: Boost Your Dividend

Articles like this are what come from parents leaving their home computers unsecured. Remember Dubai real estate? GE does, because that event is a shadow of what is to come for GE if worldwide economys remain down. Yes, contrary to the unsubstantiated yet oft-repeated "conditions on Earth have improved", very little has changed. The fact that unemployment has briefly slowed its INCREASE is not really good news; it's just less bad news. Regarding the "$61 billion (and growing) of cash and equivalents on its balance sheet" -- what is the valuation of its CRE exposure on its balance sheet? No, no, not that; I mean the actual, current, REAL value of the CRE. Yeah, baby, crickets ... nothin' but crickets there. GE will be keeping the dividend down rather than raise it and then have to lower it again. And they won't be raising it until their CRE exposure is contained. Now THAT will be a sign that the recession is over. Meanwhile, I don't own any GE stock right now, but I'm thinking about it. It trades @ $16 today. I'll be reconsidering @ $8 in 2010.

GE's Imagination at Work

(cue violins)
"Edison was an innovator first and a business man second. Wealth was just a byproduct of his incredible inventions; it was never his goal."

Nicola Tesla might have had something to say regarding this. Edison was more tenacious than he was smart. When Edison's Direct Current light bulbs, generators and transmission systems were shown to be inferior to Tesla's brilliant AC systems, Edison first hired him (which didn't last long) and then worked financial angles to get Tesla's funding cut off. In all of this I am not faulting Edison -- it was just business. But that's the point here. Remove the halo and wings from your portrait of Edison and you'll be much closer to the truth.

Five Ways This Bubble May End

From connorport:
"I have spoken with several people over the last few weeks that typically do not play the market. My consensus is from what i'm hearing is that they want in now."

Folks, you will never find a more concise definition of a Bubble than this. As we said 2 years ago, "when the ladies in the church choir are talking about flipping houses, it's time to get out fast!"