GE declared alive and doing well

We will not post again until August 10.
Goldman Sachs just upgraded the industrial conglomerate to "Buy," saying it won't have to split off its financing arm, GE Capital. General Electric rose 85 cents at $13.11. That means they think GE is now completely solvent. If true GE could easily double in price within a month assuming the market holds up.

GE money also just announced it extended its consumer credit card program partnership with Walmart. GE Money Retail Consumer Finance, a consumer lending unit of General Electric Company announced the Walmart credit card program for Walmart stores in the United States and Puerto Rico, and on the web has just grown to include store and co-branded consumer credit cards and commercial and community cards.

“GE Money has been a valued partner in helping us provide more ways for our customers to save in our stores and online,” said Jane Thompson, president of Walmart Financial Services. “We look forward to working together to provide even better value and services for our customers.”

The Walmart consumer card program provides cardholders with convenience and security, including:
no annual fee
up to 1 percent cash back on the Walmart co-branded dual card
3 cents discount per gallon on gas at participating Walmart and Murphy gas stations
12-month special financing offers
$0 fraud liability
flexibility to choose the monthly payment due date
cash back at the register, up to $100

“We are excited to extend our 10-year relationship with Walmart for an additional six years and to continue providing credit to consumers, especially in these challenging economic times,” said Margaret Keane, president and CEO of GE Money Retail Consumer Finance. “We look forward to working with the entire Walmart team to help serve millions of customers across America.”

In addition to the Walmart consumer and commercial credit programs, GE is also the banking partner with Walmart on the Walmart MoneyCard, a leading co-branded prepaid reloadable Visa debit card in partnership with Green Dot Corporation.

GE Money’s Retail Consumer Finance is one of the most successful retail credit providers with more than $30 billion in assets and over 40 million account holders. The business unit provides private label credit card programs, bankcards, and financial services. GE serves customers in more than 100 countries and employs more than 300,000 people worldwide.

GE is in a particularly lucrative position as the owner of GE/MSNBC/Pravda which gives corrupt American politicians $billions in free continuous lobbing support and well as campaign attacks on anyone interested in American free enterprise or government fiscal responsibility. MSNBC ridicules those who expose Senate Banking Committee Socialists who bankrupted mortgage lenders and guarantee companies with their continuing policy of, "Everyone who wants a home deserves one so don't ask questions even if you think the applicant is on welfare." This corrupting socialist policy continues to this day and both Fannie Mae and Freddie Mac will get annual bailouts with taxpayer money as long as the corrupt politicians get re-elected. They gave non-taxpayers more than $100billion in mortgage default losses last year. But hey, that’s one way for GE to make a lot of money… in the collapse of the US economy! Money is made both in the rise and the fall of nations. GE stock is going to soar now as long as it controls the Nationalist Socialist Democratic Party (NSDP) propaganda machine GE/MSNBC/Pravda/Goerbels.

Market forces July 30
The communist and socialist nations support the bankruptcy of the USA as a way of destroying worldwide free enterprise and individual freedom and establishing a world socialist state without a war. MAD (Mutual Assured Destruction) will be accomplished without a launch of a single nuclear weapon. They are acting like a big credit card company extending credit until the debt payments are unmanageable and then they will raise the interest rates and bankrupt Obama's Socialist States of America and bring freedom all around the world to its knees.

The U.S. Treasury Department just sold $28 billion in 7-year notes on Thursday, with vast majority of the bonds sold coming in near the high price (good Communist China terms), a sign that Communist and Socialist support of American bankruptcy this record amount of government debt is holding up well.

Thursday’s auction culminates this week’s $117 billion in bond auctions. Foreign government and institutional participation in the auction was a record 62.5%, the Treasury Department said, the best participation by foreign parties.

The Treasury said it sold the notes with at a yield of 3.369%, with 91.73% being sold at the high price. The bid-to-cover ratio, a sign of demand for the security, was 2.63 -- better than the average 2.40 ratio for the product. The 91.73% shows that the Communists are now more organized that when we reported the earlier sales this week. When they reach 100% we will know the Communist coalition is in complete control of American debt.

Traders had expressed worry in recent months that the flood of debt being poured onto the market, with each auction increasing to a record amount, could push yields higher. But that will not happen until we have "debt critical mass" such that even the rate increase will be impossible to pay, much less the outstanding debt. At that point the American Obama Democrat Socialists can declare total victory for government controlling every aspect of America from cradle to the grave. When they have taxed everything you made and redistributed it you are just a political threat. Yes then they will tell you old folks when it is time to drink the cool aide and die quietly for your country to get rid of your vote. In Chicago all dead people vote for the Democrat Socialists and so will you.

Treasury will auction the 10-year notes and 30-year bonds in two weeks, which will be another key test of whether the communists are willing to buy more long-term debt, especially with chatter about inflation in coming years.

Today the GDP will be reported lower for the quarter for the third straight quarter. That means we are still in the recession. How far it falls will say whether or not the recession is slowing. Housing is not yet recovering. The defaulted housing is what is moving the sales upward.

In summary, the availability of this money stimulates the economy by inflating the debt bubble. All the loose cash will support stock prices. But the next day of reckoning will be when the socialists and communists call American debt.

Market Outlook

The recent rally has the market in a highly overbought position again. We expect U.S. stocks to continue with slides that represent buying opportunities and then wild optimistic appreciation (as we have just had) that can be times to take profits. This may very well be a consolidation period not a distribution period. That means that the sharp drops in some sectors may be funds cleaning out the sellers. But it would be unusual not to have a sharp sell off panic from time to time.

If you have been buying stocks like GE, real estate, energy, precious metals, etc when they were low you are finding you have some big profits now. You need to consider selling them (or enough to capture just their costs) if you do not want to lose capital when the next market panic occurs.

Last night Asian markets were up: communist China up +2.7%, socialist Japan up +1.9%, and socialist India up +1.8%.

Today most of the socialist European markets are flat in a range of -1.1% to +0.7% half way through their session.

US futures indicate a lower USA market opening this morning.

Anticipate a panic spike down any time now as a buying opportunity. For instant stocks that have gapped up and rose sharply often drop down to close the gap. A gap is when a stock opens much higher than at any time the previous day.

We will continue cherry picking mostly into and now also out of the market rotating before or when the funds rotate through the sectors. We expect the decline will be a typical rotation with sharp drops in some individual stocks/sectors while other stocks/sectors bottom out or rise and then decline so the change in the market indices will be much smaller. The advances will be similar but opposite. Investing time is now compressed and hence investing requires more trading skill. We watch the sectors carefully because hedge funds seem to deflate one sector at a time and then let investors pump them back into overbought territory. They can do that best during the kind of rallies we see in this sideways market.

The new socialist administration seemingly destroys every free market sector they touch. Hedge funds seem to be betting that the Obama bill fails. But if his socialized medicine passes in any form whatsoever we expect health care stocks to implode as they did when Obama first announced his plan.