UteFan

GE: The Decimation Continues

The fact of the matter is that GE Capital has negative equity and is bringing down the entire company. As the economy continues to deteriorate, the asset values on GE Capital's balance sheet will continue to drive the company into the ground. Many people are suggesting to split GE into two companies, one financial and the other non-financial. However, this process is impossible given the deterioration in asset values on GE Capital's balance sheet. Essentially, GE Capital is so underwater that nobody would take it even if it were free. That is why we are seeing the overall valuation of GE so depressed.