Jack Welch, the former chairman and CEO of General Electric

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[GE  Loading...      ()   ] told CNBC that he's optimistic despite weak economic indicators, such as today's rise in jobless claims, and the selloff in the market.

Welch on Layoffs

"The consumer is de-leveraging. General Motors

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[GM  Loading...      ()   ] needs the consumer. It needs the consumer to be able to borrow which is tough for them to do right now. We’re going through this correction and so GM would be expected to be hit. Consumer de-leveraging is going to be painful… but, it’s not the end of the world. I don’t think we’ll have 13 percent unemployment; I don’t think we’ll have 21 percent prime rate. We have deflation if anything going on. Now commodity prices are down; oil is coming down."

Welch on Dow’s Selloff

"I am a little surprised that everyone is surprised that some of the forecasts are down. Why did the Dow selloff? It didn’t selloff just because of a credit crisis; it sold off because we were going to impact the economy. And we wake up one cent off the estimate and all hell breaks loose. I was shocked yesterday."

Welch on Government Intervention

"For the argument that we’re becoming France, which is thrown around all the time with this government intervention, we have a long history of over a century of entering problem areas with the government, WWI, WWII, 1984 with Continental Illinois… but we have an in-out strategy. We don’t hang in there."

Welch on the Economy

“It’s going to be tough for a period while they de-leverage.”

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