GE is one of the biggest manufacturers of weapons in the world, and they are one of the largest benefactors of the Military Industrial Complex. Their
financing arm, GE Capital, has decided to stop financing gun manufacturers. This is one of the most hypocritical things I have ever seen.... guns and
ammo for the globalist machine, but the little peasant surfs get nothing. They are showing their true colors.... this is the very definition of
Fascism... Government and Corporations working together to achieve a political end.
This was strictly a business decision based on reputation risk. Banks and lenders in general classify industries according to the level of risk
associated with that particular industry.
For example, banks typically have strict credit requirements for certain industries. Some industries are completely restricted, and bank loan
officers cannot lend to these businesses in these sectors whatsoever. Other industries are somewhere in the middle - Banks will lend to them under
only special circumstances and conditions.
For most banks, gun retailers are a restricted industry. The reputation risk is too high. Banks and lenders don't want to be associated with high
risk industries that are perceived by the public in a negative light. So, for example, banks are restricted from lending to the "adult' industry.
Any businesses in this sector have to raise funds via private investors, not from the banking system.
Banks do not want to lend to these businesses because the reputation risk - i.e., the perception of the shareholders, depositors, and the public in
general - is considered to far outweigh any potential financial upside.
These are strictly business decisions, and GE has every right to pick and choose to whom they want to lend money.
From a profit perspective, GE probably can divert these same loan funds to other industries that are more profitable, such as healthcare, that do not
have the same reputation risk.
Let me add one more comment regarding reputation risk: The hypocrisy of some of the posters here on this forum that bash GE are the same folks that
will cry foul if GE were to provide capital to a gun dealer that is later found to be providing guns to criminals, gun smuggling, or some other
illicit activity. "Why did GE fund this gun dealer?" they will say, and bash GE to smithereens for providing capital to said gun dealer.
All in all, GE's decision is a sound business decision from any angle.
edit on 25-4-2013 by CookieMonster09 because: (no reason given)