GE $38 billion dollar fraud?

vegetableoil

https://www.youtube.com/watch?v=2VCtB3E0JB0 

What do people think? is this real?

Margaretaville

GE Capital is a major problem, as it was in on the ground floor selling long term health care insurance for seniors in the 90s.

It may have seemed like a good idea at the time, but as the baby boomers aged, lifespans became longer, and demand on the health care system raised costs, GE Capital failed to properly estimate their future liabilities when setting the premiums. In short, they have taken on too much risk.

GE Capital is dragging down GE, wouldn't surprise me in the slightest if GE were underestimating their future insurance payouts from GE Capital to make their bottom line look better.

Situation is so bad that GE even tried to peddle GE Capital, but there were no takers willing to assume the risk. That tells me the GE Capital is still not properly discounted to account for the risk.

CRAP = Cleverly Rigged Accounting Ploys, and GE wouldn't be the first company to use them, and won't be the last.

…….and the beat goes on, the beat goes on.

vegetableoil

Well if it's true this would be a shitstorm, half of my old classmates work for GE. Many people around the world don't understand how important GE is. A lot of the Power plants around the world uses GE parts.

Margaretaville

Well, the "shitstorm" would mostly fall on the aging baby boomers that purchased and continue to pay premiums on their long term care insurance with GE Capital, 'cause their getting nuttin' for Christmas.

As to the profitable areas of GE, those will still exist, but probably not under the GE name, as they would be split off and sold by the creditors in a bankruptcy, probably to venture capital firms that will hold them for a short term, repair their balance sheets, and issue new stock in an IPO (initial public offering). 

Obviously nobody will want the loss generator GE Capital, which is why I say that all those boomers holding long term care insurance are getting nothing for Christmas, except fleeced.

But isn't that always the way of the world, those fast talking, sharpy, big shots madoff with the cash, while the little guy loses his ass?

…..and the beat goes on, the beat goes on.

vegetableoil

Bail out  like 2008 may be? nothing surprised me  anymore.