A couple of weeks back, a colleague of mine who previously worked in finance for U.S.-based General Electric (GE) sent me a link to the below fascinating Seeking Alpha article titled 'General Electric: Genuine Risk Of Collapse?'. Despite the risk of perhaps providing TOO Negative and dreary of an outlook/view on the current challenges being faced by one of America's most highly regarded institutions (...FYI + according to Yahoo.com/finance, GE employs approx 330,000 employees worldwide), I decided to include the link on ETB because the November 17th dated article was simply too compelling, informative and well-written to ignore.General-Electric-Genuine-Risk-Of-Collapse
Make NO mistake about it, GE already has (the stock is down 60% year to date to about $16/share) and will continue to face significant operating headwinds in 2009 and perhaps 2010 assuming the current near-consensus forecast of a gloomy, global macroeconomic environment (FYI - The U.S.'s National Bureau of Economic Research just officially announced today that the U.S. economy entered its ongoing recession in December 2007).
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* Anecdotally predicting + in terms of consequences, expect General Electric to make some 'Citigroup-esque' sized JOB CUT announcements in order to stay competitive during the Recession (a total of 50,000 in CUTS is definitely NOT out of the question given GE's employee base of 330K).
*Snapshots of GE's Balance Sheet + post 2004 Stock Buyback program:
Data Courtesy: Seeking Alpha + National Bureau of Econ Research
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