GE
Courtesy of Roger Nusbaum’s Random Roger’s Big Picture
Whatever is really going on with GE (credit spread issues, raising capital, paying Warren 10% and so on), will we look back on this week has having been a crucial turning point?
The turning point I would hope for is not necessarily that the bottom was put in on Monday (although that would be nice) but more that the "historic" volatility comes to an end, the news becomes far less dramatic and then at some point down the road the market turns up quietly.
The idea that GE, huge financial exposure notwithstanding, is in serious trouble seems unlikely. Strained, sure, but trouble enough to justify the rates it is paying to Warren, I doubt it. Maybe GE is taking a page from Goldman Sachs about hiring Buffet as a spokesperson.
Long before the crisis started I mentioned the idea that any company can fail and we have seen that but I doubt GE is facing that and I think its rush to raise money this week is an extreme reaction–probably an over reaction–to what is happening.
I have been thinking 1095 will be the bottom in stocks but that is just an opinion, whatever the final number is, I am saying that after this week, the search for the bottom could be a lot quieter.
Well I hope so anyway!
