Saturday, April 18, 2015

Too Big to be of Interest to Investors

The Too Big To Fail syndrome culminated in the 2008 financial crisis.  Refocusing G.E. Reports Growth in Industrial Businesses notes that they expect their finance division to reduce to 10%  of overall profit generating operations.  This is a reduction from 42% in their finance department's hey day. Nobody put a gun to G.E.'s head and told them to come down from Too Big To Fail other than their own bean counters who determined it was a loser business and to get out.  Frankly, when finance gets too much over 10% of the country's economic activity its bad business.  As an investor I believe that the Too Big To Fail Banks are lousy investments.  Their lobby in Washington spends large sums fixing things so that they can practice foisting loser deals on completely suspecting customers who are running away from them as fast as they can.

No comments:

Post a Comment