The climate of fear and panic

Finally, an article that contains some common sense. I don’t want to be taken the wrong way, GE is a company with a lot of problems that were years in the making and will take a lot of work and wisdom to get out of, but GE is also a company that is far from being in a position that its existence is being questioned. The free fall of the stock has been fueled with the atmosphere of panic and fear that has been built around GE by Wall Street analysts regarding the missteps of the leadership. I like the way the author of the article put it:

The key to staying in the good graces of Wall Street analysts is to under-promise and over-deliver.

https://seekingalpha.com/article/4228939-wall-street-way-negative-general-electric

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GE has been like "the boy who called wolf". In the recent past, top management has told employees and investors that all is well and your money is safe and will grow. But in the background, they have hidden the truth with accounting tricks. Used tens of billions of dollars on buybacks to artificially prop up the stock price and delay the inevitable. Erase the dividend. And now they claim "transparency" and a company turnabout is coming! Can they be believed? Will you risk your money? Like the sage once said, "this shows how liars are rewarded: even if they tell the truth, no one believes them".

Good fiscal management requires professionals who know what they’re doing, educated to top level and dismissive of those who don’t know how to avoid debt. Who don’t need a bunch of fruitcakes running around screwing things up.

The Boogeyman is called debt. The $40B Piper has come a calling and there's no escape.

Thread regarding General Electric Co. layoffs

The climate of fear and panic

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