k45

The Banker's Choice

On one hand I agree with @constructe that it's amazing how Congress writes blank checks with no clear requirements as to how it is to be used. However, when you think about it, having Congress deciding how industry should be run is probably the worst possible way to manage. After all, bad decisions in Washington have largely been responsible for the mess we are in.

(Think of it this way: what's worse than the Big Three management? Washington management.)

Never Listen to the Rating Agencies

GE bonds have been trading with yields 2% higher than AA rated bonds. Obviously the market knows a lot more than "Johnny come lately" S&P.

But two years? Yes, S&P obviously makes their ratings by looking in the rear view mirror. By then GE either will be past the problem, or will have crumbled. Either way, an honest assessment would have downgraded GE months ago. The market already did.