Posted on April 11th, 2008 in Daily Mortgage/Housing News - The Real Story
Now, this is news…and forward looking news. GE doesn’t miss. This is a joke right. They are the absolute proxy for the global economy. Think we maybe headed into a recession now? Humm? This is most definitely a wildcard that absolutely destroys the perma-bull’s ‘the bottom is in, buy all the dips with impunity’ thesis. This just maybe the smoking gun that proves things are accelerating even after massive Fed intervention. This miss likely took GE by surprise too or Immelt would have warned…that is the story within the story. Bubblevision is freaking out trying to turn urine into lemonade of course. Hey, maybe CNBC (owned by GE) will have to fire Dennis Kneale in a cost-cutting measure. We will never get so lucky. In my opinion, not only does this miss show things are getting worse by the week, but it shows ANALysts are worthless. They don’t have their crap together this quarter as usual. Their estimates for this quarter/year and especially 2009 are an absolute joke. Hey analysts…FALLING HOUSING PRICES DOES NEGATIVELY EFFECT THE CONSUMER. Rising housing prices did the opposite for many years. See the correlation? You figure the rest out and how it applies to earnings. Oh ya, Dick Bove, please retire. Nobody else needs to lose money by you constantly calling a bottom that maybe a long way away. -Best, Mr Mortgage
GE Says Profit Fell, Citing Finance; Forecast Reduced (Update2)
By Rachel Layne
April 11 (Bloomberg) — General Electric Co. said first-
quarter profit fell 12 percent, missing analyst estimates,
because it couldn’t complete asset sales and had higher-than-
expected losses at its finance businesses due to disruptions in
global capital markets. GE cut its full-year forecast.
Profit from continuing operations dropped to $4.36 billion,
or 44 cents a share, from $4.93 billion, or 48 cents, a year
ago, Fairfield, Connecticut-based GE said today in a statement,
trailing the average analyst estimate of 51 cents. GE shares
declined in Germany.