swellman

General Electric: Genuine Risk of Collapse?

Is this analysis right or wrong only time will tell. The one thing I usually do before I believe anyone's slant is to see what their track record is on making previous predications. Anyone can write an article about how bad things are after a stock is down 50% in a year, but a true analyst does this at much higher levels and profits from it. Did this person?? I doubt it. Did he say he is short? I have been in this business long enough to know these are the kinds of articles that come out from people near market bottoms. People who write well written articles but have never really made any money trading in the markets.

GE Capital Default Risk Soars

What the man is saying is that credit risk for GE is going up and fast, this doesn't mean they are going to collapse it just means the probability of this happening is running a lot lot higher right now. GE approached Buffet for the loan because they understand the risk they face, they would have never went into this deal if they weren't forced too. These aren't regular times some very big names are going down, it won't be pretty.