THIS IS WHAT WE NOW CALL OPTIMISM - AT 2:01 P.M. ET: 

March 12 (Bloomberg) -- General Electric Co. shares and bonds rallied after Standard & Poor’s lowered its debt ratings one level and raised the outlook to “stable,” comforting investors who feared a sharper cut as profit falls at GE’s finance arm in a global recession.

The switch to AA+, from AAA and with a “negative” outlook, affects long-term debt, S&P analysts said in a statement today.

GE, which held the top rating since 1956, said in a statement doesn’t foresee “any significant operational or funding impacts.” The Fairfield, Connecticut-based company’s shares rose 87 cents to $9.36 at 11:55 a.m. in New York Stock Exchange composite trading.

COMMENT:  The market rallies because GE's debt rating wasn't cut as much as had been feared.  This counts for good news and a reason for "investors" to get back in.  The language of Wall Street is very far from the language of Main street.

March 12, 2009