A private market solution is unlikely

A private market solution is unlikely to provide the answer. Individual risks are not evenly spread and, as with pensions, we will always tend to put off preparation for another day. Smalland medium sized firms cannot be expected to have the experience and expertise to deal with the range of health and disability issues that their employees may face..

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But for the financing business, we would be sanguine about credit investments in GE. This is despite the fact that GE’s earnings will be severely crimped in the near term as societies all across the world deleverage and look for cheaper, if less than perfect, solutions. The signs are already there as GE’s industrial earnings growth has been achieved by cost cutting rather than revenue expansion.

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