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Non-Tech : General Electric (GE)
GE 285.33-0.6%Dec 9 3:59 PM EST

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To: badgerstate who wrote (1821)3/26/2001 7:13:33 AM
From: Arthur Tang  Read Replies (2) of 3256
 
401k money continues to roll in each month, and the money has to be placed. So, pessimism has to be tempered; until you find out where the 401k money($200 billion annually) is going. Wall street expenses is only estimated at $10 billion.

Of course, GE has to compete with all the other stocks. Which means Mr. Welch(Welsh) has to talk to some fund money managers every once in a while. GE capital has two big opportunities; shortage in loan money at the US banks due to shrinking reserves, and FEDS lowering of interest rates effecting larger margins on older time payment loans. Other businesses need to have planned obsolescence and replacement products and services in place for execution.

Things are looking up, but FEDS still need to lower interest rates for a while at a steeper cut, then return to 5% overnight discount rate and keep it there for easier prosperity. At a steady interest rate, anyone can learn to make money.
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