s*********8
发帖数: 901 | 1 General Electric owes its creditors $600 billion. That huge amount of debt
is offset by $468 billion of investments and cash. However, much of those
investments are credit-card receivables and Eastern European mortgages. The
business, which no longer focuses on manufacturing, is dependent on credit
markets.
Again, GE would have collapsed if it didn't get a government bailout. (The U
.S. government guaranteed all of GE's debts through 2012 for free.) It can't
afford its debt at current, manipulated interest rates… much less at the
rates the company would pay without a government guarantee…
Right now, if GE put 100% of its cash from operations into debt repayment
every year and its earnings stayed at 2010 levels, it would take 16 years to
pay off its debts. It would take at least a decade to pay down its debts to
a more manageable level. No question, if GE were being managed prudently,
that's what it would do.
GE holds about $40 billion in tangible equity. I believe its European
mortgage losses are likely to be at least this large over the next five
years, which means, at some point soon, GE could be going to the market for
new equity. If that happens, the company's share price will probably fall in
half.
Why run the company this way? Because the managers know GE is too big to
fail. They're not running the company as though they actually own it. They'
re simply running it to maximize their own compensation. If it fails, it
fails. The stockholders will get wiped out and the government will bail out
the creditors. In the meantime, GE's managers are trying to get rich. They
want to keep the company as leveraged as possible. They don't want to repay
debts. They want to maximize the company's ability to borrow. | s*****r
发帖数: 1745 | 2 lol, where did you dig this issue up?
When you look at its debt level compared to other finance companies, it is
no biggie at all.
The
U
't
【在 s*********8 的大作中提到】
: General Electric owes its creditors $600 billion. That huge amount of debt
: is offset by $468 billion of investments and cash. However, much of those
: investments are credit-card receivables and Eastern European mortgages. The
: business, which no longer focuses on manufacturing, is dependent on credit
: markets.
: Again, GE would have collapsed if it didn't get a government bailout. (The U
: .S. government guaranteed all of GE's debts through 2012 for free.) It can't
: afford its debt at current, manipulated interest rates… much less at the
: rates the company would pay without a government guarantee…
: Right now, if GE put 100% of its cash from operations into debt repayment
| o*********l
发帖数: 1807 | 3 some level of debts are healthy, you don't want to be hoarding cash because
you could be a LBO target. | r*m
发帖数: 16380 | 4 make sense。
金融危机的根源就是不负责任的leverage up。 | w*j
发帖数: 6104 | 5 靠，这要make sense的话，你空的FAZ不完了。
【在 r*m 的大作中提到】
: make sense。
: 金融危机的根源就是不负责任的leverage up。
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