First off, we have ye olde declining double top (Owl Ears) that have formed conveniently along a line that is just about parallel to the already established lower rail. I don't care what anyone says, I don't care what the fake fundamental say. This is bearish and GE is going down hard from here.
GE will collapse from here as the credit markets rapidly dry up because
it is little more than a shadow bank running a vendor finance scam. When I first reported on the horrendous Altman Z-Score of GE it was still 1.3. It has since deteriorated to 1.28.
Keep in mind that the last Z-Score reading was in December of 2013. The economy is supposed to have been improving since then!! So why did GE nudge another step toward BK in that time?? And why is the main stream media not talking about the risk of this "blue chip" Ponzi scheme? Folks this POS has only $11.7 bn holding down $380bn in debt. How long do you think that is going to last when:
- Those who GE has loaned money to in order to buy their overpriced products fail to make payments?
- GE is unable to roll the debt over cheaply as interest rates rise?
Every financial analyst on the planet right now thinks GE is a solid investment because they only look at quarterly profits without considering the debt. You can get away with that as long as the inflation keeps their debt fueled growth ahead of the debt service but when the credit collapses the debt fueled growth collapses while at the same time the debt service increases due to needing to constantly roll debt over at higher interest rates. That double whammy is how a big company like GE can collapse within a very short time.
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