Short

GE is in trouble

GE has been participating in stock buybacks. They have spent a lot of their renaming capital on buybacks, 24 billion to be exact. I am guessing a lot of the stock buybacks were with borrowed money due to the low interest rates of 2009-2015. As the interest rates rise, GE will have to pay back their debt. The money GE put into its stock is worth less now compared to when they put it in. If this is borrowed capital then GE could be in serious financial trouble. Even if they will have a hard time recovering from their stock buybacks, I doubt GE will go out of business. GE makes well made, reliable products and is not a "scammy" company. I believe GE will double bottom at 5$. If GE announces plans pay off their stock buyback loans, then i think buying their stock would be a good idea. We will have to wait and see.

CryptoColm

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