Defaulting banks - where will it stop?

[Jan Klimkowski]

Genesis (Karl Denninger of Market Ticker) reports that market insiders have placed bets on GE being bankrupt by the third week of June, 2009.

Yes. General Electric.

Of course, Wall Street's beloved GE CEO, Jack Welch, increasingly steered GE away from making things and into using its hard-earned AAA credit rating to become the loan shark of last resort. So the hubris of Welch means that GE may indeed deserve its bankruptcy.

NB there are charts at the url:

http://market-ticker.org/archives/846-He...es-GE.html

This is what is going to happen, as I noted in BlogTalkRadio yesterday afternoon, if "The Bezzle" is not removed from our system NOW.



Take a look at that folks. That's a snapshot of today's volume for June GE $2.50 PUTs.

That's over 52,000 contracts traded today, controlling 5.2 million shares.

They were purchased for about 30 cents, which means that the price has to be under $2.20 for them to go "in the money".

This is a bankruptcy bet on General Electric by the third week of June.

That's right - General Electric.

Folks, this is precisely what I was talking about last night on BlogTalkRadio. Go listen to my monologue on "The Bezzle", right at the front of the show, very carefully.

This is precisely what has happened with many financial institutions already and what happened to hundreds of companies during the 00-03 Tech Wreck.

General Electric is a stalwart of our financial and industrial system. A bankruptcy by GE would be catastrophic for our economy and capital markets. The follow-on damage with suppliers and customers would be even worse.

If "The Bezzle" is not brought under control right damn now this is what is going to to happen to company after company. We WILL see the S&P trade at one hundred if we start to see firms like GE go down the toilet.

Ladies and Gentlemen, Legislators and President Obama, your time is running out to change direction.

The number of people who have told me that I am wasting my time continues to grow.

You folks who are sending me those emails are missing the point of my activities in this regard.

It is my intention to guarantee that these actions and intentional and willful blindness is documented so that when these failures occur, which I have predicted and provided a path by which they can be prevented, occur due to the intentional and willful malfeasance of our lawmakers and policy "wonks", the people can correctly hold to account the people responsible for their unemployment, homelessness and hunger.

When firms like GE come under attack like this what I am talking about here is coming - imminently.

Either behavior changes RIGHT NOW or the outcome will become inevitable.