GE to Sell Roughly $4 Billion Stake in Baker Hughes -- Not Bringing Good Things to Life
GE will sell up to 101 million shares of stock in an offering to the market and Baker Hughes has agreed to repurchase about 65 million shares from GE. The deal allows GE to sell about six months sooner than previously agreed. The stock popped on the news today a little over .60 cents, but this is only temporary, this Titanic is headed lower for longer.
Why the rush to raise funds just 6 months early? They are bleeding cash and their bonds are now trading near junk status. Their finance costs are exploding.
When I was in college, we studied GE and why their debt was one of a few companies that were traded as AAA and were on par with US Government paper. Now they trade like toilet paper and rightfully so. They gambled, levered up their balance sheet and lost some big bets. Jack Welsh, Jeff Immelett and those that came before them helped politicians in the US shed its manufacturing base, hollow out the economy by shipping real productive jobs overseas and help destroy the middle class. Those 50 year old chickens are now coming home to roost.
.png)
IMO, this thing is going to 0 or close to it before its all said and done unless they get bailed out either covertly or overtly. Maybe Uncle Warren can write them a check for $20 or $50 billion when the debt Ponzi pops just like he did for Goldman Sacs.
To invest in Mene24k Gold Jewerly click Here
To open your own BitShares account, click Here
To open your own Binance account, click Here
Thank you for your continued support of SteemSilverGold
Too big to fail 🤬???
Posted using Partiko iOS