GE Disappoints Who?

GE (GE) announced a few prudent if not very late moves. It will conserve cash by not buying its shares at a deep discount. It will engineer smaller dividends from GE Capital which will help GE put more money into GE Capital. But the corporate dividend seems OK or so they say?

Basically the plumbing is backing up. Instead of shareholders being bought out with their own money the funds will now be used to shore up problems in GE Capital. At this stage of the game it should not be a surprise that GE Capital may have some problems. What we need to worry about is GE’s slow response.

GE is a conglomerate that prides itself on superior thinking. They are very good at making strategic bets and then riding the gravy train for long periods of time. The culture does not allow for the nimbleness that is needed of a financial institution.

Everyone is focusing on how GE Capital is suffering. Given the recession/economic slow down that is looming how will the other strategic bets do?