Ed Harrison (EH) recently asked should GE be a AAA company, at http://www.creditwritedowns.com/2008/11/should-ge-be-aaa-company.html. Yves Smith at Naked Capitalism led me to EH's post. My answer: of course. If Uncle Sam is an AAA credit, why not?
Imagine, the world's best managed company needs a bailout. How do you spot a well managed company? It pays outsize executive compensation! Does this mean every other company with well paid executives in America needs a bailout too?
Without Uncle Sam's support, this junkpile of financial garbage would probably fold leaving only GE's industrial businesses. Remember those?