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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Stoctrash who wrote (10553)	11/13/2008 2:08:23 AM
From: John Pitera	1 Recommendation Respond to of 33421

Hi Rick, you notice that they are getting a facility for 125% of their maturing unsecured debt....does that enable GE to go provide new credit with pre established government backstop/bailout guarantees? On the one hand the system needs new credit availability from here 'til doomsday.... yet, on the other hand does this not enable GE to lend making a profit with a preconditioned US Government bailout if the lending goes bad..... or I'm sure you could spin it that the extra 25% would help to hedge against relatively near dated lending that would be defaulted on....... I guess Jack Welch did grease enough wheels. But where is the integrity in all of this? Is this really what this country and our financial system has come down to or degenerated too? John