Posted on 11/14/2008 7:15:53 AM PST by Dutchgirl
Mon Nov 10, 2008 - Thought the bailout just extended to a handful of major banks and government sponsored entities? Think again. This from Clusterstock.com:
Triple-A rated GE has long been considered as safe an investment as you can get--as safe as, say, houses. But last week's emergency financing, which destroyed tens of billions of dollars of GE shareholder value, caused many observers to revise their opinion of the company's risk profile. And language in GE's most recent 8K should cause everyone to break out in a cold sweat.
As of June 30, GE had about $100 billion in short-term debt, the commercial paper that is becoming more and more expensive to issue. Commercial paper has to be rolled over everything three months or so. This means that, unless GE massively reduced its short-term debt load in Q3, the company will need to keep borrowing about $100 billion every three months. A bummer, then, that the commercial paper market has seized up.
…
So, good thing the Fed just announced another massive bailout plan for the commercial paper market. Many tens of billions of that bailout money will probably be headed to GE.
Another article entitled ANOTHER HUGE BAILOUT: Fed's New Commercial Paper Fund states that in addition to loosening the credit markets, this massive new bailout might save GE.
In other words, the American taxpayer is bailing out General Electric. In case you weren’t aware, General Electric is the parent company of NBC and MSNBC. Say what you will about Fox and CNN, last time I checked they weren’t being subsidized with taxpayer dollars.
Congratulations America, you are the proud owner of Keith Olbermann’s brand new 4 year extension on his contract. Woo hoo!
For some years GE was concerned about the impact of their financial arm becoming to large and changing their classification from industrial to financial. Now, they are paying the price and drinking the Kool-Aid. They should have sold off the consumer credit portion of GE Credit while they could have and stuck to industrial financing, but greed drove them on.
He needs the money for all his meds.
Since Olberman’s such a big lefty, I’m sure he doesn’t mind taking Welfare.
GE depended on its triple-A debt rating to perform arbritage deals with its financing arm and “perfectly” produce what it had already forecasted in profits each quarter. They did this by adjusting how much money they made from their financial sector to make up the difference in revenues from other sectors.
This is basically a confidence scheme. They have a triple-A rating because they are predictably profitable. They are predictably profitable because they have a triple-A rating.
Once the rug gets pulled out from under one part of the scheme, the whole things creates a huge negative feedback loop that can easily spiral out of control.
In that respect, GE is but a tiny microcosm of whats been going on in financial markets since september 15th.
Oberman just got a 7 million per year deal. Is he going to cut it?
Is Crissy Dodd going after him?
WE NEED AN CONSERVATIVE OBERMAN! WHERE IS HE. YES I AM SHOUTING!
Lotta money to pay for an ignorant buffoon.
What a revoltin’ development!
Olbermann used to be a sportscaster in L.A. about 15 years
ago, and was funny cause he was poking fun at the self
importance “sports” assumes in our society with his
broadcasts...he also used funny word play....so he was
amusing...
But after finally watching his political act on TV I realized he
is trying to do the same thing with politics. Just poking
fun at politicians...he is still sort of the the
“smarty-pants 7th grader” type of guy(IMHO)...I wouldn’t
consider his opinions since they appear to be
shallow, and inexperienced...but then again...who is
his audience...are they as condescending and
naive as he is?
Looks like they stumbled into the same quickstand that their old rival Westinghouse fell into 20 years ago.
They we as taxpayers should demand a full Congressional investigation of Olby's new contract. If corporate CEO compensation is being limited after a bailout then all the "talent" at NBC and MSNBC should be put under the same rules. No more private limos, clothing allowances or personal assistants. Put them under the same spotlight they have put AIG, every NBC or MSNBC reporter should have to answer for every expense incurred, every meeting attended, every dinner, hotel stay and transportation expense.
bump
O’Reilly will be choking on his own outrage over this. Should be a good show.
You’re kidding, I hope. Otherwise, your judgement is as bad as your grammar and spelling. I don’t want a POS like that on my side.
And Rachel Maddow is his mini-me! How demeaning for a selfstyled feminist.
She uses the same facial expressions, hand gestures, faux outrage, and snarky commentary.
Very much like a seventh-grade girl.
What a loser!
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