General Electric Just Signaled The Next Crisis (And Nobody’s Paying Attention)

GE Just Signaled The Next Crisis And Nobody’s Paying Attention:

Earlier this month, General Electric took a $6.2 billion charge to its insurance unit for the fourth quarter. And the company said it will set aside another $15 billion over seven years to bolster reserves at GE Capital.

The charge had to do with long-term care policies (to pay for nursing homes and other late-life care) GE holds on its books.

So, one of the oldest and most highly-regarded companies in America just made a small, $21 billion miscalculation. Oops.

Keep in mind, GE’s entire market cap is only $140 billion.

The insurance charge, along with costs tied to the US tax plan, led GE to a $9.64 billion loss in the fourth quarter.

Read moreGeneral Electric Just Signaled The Next Crisis (And Nobody’s Paying Attention)

General Electric Slashes 12,000 Jobs In Troubled Global Power Business

GE Slashes 12,000 Jobs In Troubled Global Power Business:

A day after labor unions warned that General Electric was planning thousands of job cuts in its troubled power-generation unit, GE confirmed that it’s planning to cut 12,000 jobs globally in its power business as the company’s new leadership tries to revive the company’s moribund stock price.

The reductions would account for about 18% of GE Power’s workforce, will mostly affect professional and production workers outside the US. GE is also paring back capital expenditures and research-and-development spending as it grapples with a sharp downturn in gas- and coal-power markets.

Read moreGeneral Electric Slashes 12,000 Jobs In Troubled Global Power Business

GEsus! General Electric is now down over 15% from its pre-open highs and down over 8% on the day (the biggest drop in over 8 years)…

GEsus!:

GE is now down over 15% from its pre-open highs and down over 8% on the day (the biggest drop in over 8 years)

For The First Time Since The Financial Crisis GE Slashes Dividend In Half:

“We understand the importance of this decision to our shareowners and we have not made it lightly. We are focused on driving total shareholder return and believe this is the right decision to align our dividend payout to cash flow generation.” – GE CEO John Flannery.

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The Real Numbers Behind GE’s “Beat”: Organic Orders -16%; Power -27%; Equipment Orders -30%; Aviation -37%

The Real Numbers Behind GE’s “Beat”: Organic Orders -16%; Power -27%; Equipment Orders -30%; Aviation -37%:

How did a company which saw an unprecedented 16% plunge in organic orders not only report a 65% surge in earnings, but smashed Wall Street expectations? Read on for the 1 minute explanation.

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General Electric CEO Jeff Immelt: Now Is A ‘Perfect Time To Be A Seller’

Thelma

GE CEO Says Now is a “Perfect Time To Be a Seller” (Dark Bid, April 10, 2015):

If you thought you had market impact problems, then you have never tried to sell $273 billion of loans.

GE Capital’s 2014 loan portfolio was marked at $363 billion. It will take a lot of maneuvering to bring it down to the $90 billion target. With the market at all-time highs and with valuations stretched beyond all conceivable rationality, GE CEO Jeff Immelt said now is a “perfect time to be a seller. People are lining up at the starting line.”

Read moreGeneral Electric CEO Jeff Immelt: Now Is A ‘Perfect Time To Be A Seller’

How GE Will Fund The Largest Stock Buyback In History

–  How GE Will Fund The Largest Stock Buyback In History (ZeroHedge, April 10, 2015):

Back in April 2013, Apple shocked the world when in a dramatic U-turn to Steve Jobs beliefs, it announced what was the largest single share repurchase authorization in history” when it boosted its share repurchase authorization to $60 billion from $10 billion. Today, GE did its best to match this number, when it reported that as part of a massive business restructuring, it announced a “new Board authorization of up to $50B buyback.” This is how it will fund it.

GE Announces One Of Largest Buybacks In History, Will Repuchase $50 Bn In Shares After Selling Most Of GE Capital (ZeroHedge, April 10, 2015):

Moments ago, General Electric showed why April is much more likley to be a rerun of February than January or March when it announceed that it would go ahead and repurchase half of the total record stock buybacks announced in February, or some $50 billion in what may be the largest stock buyback announcement in history! How will GE fund this massive distribution to its shareholders, of which the most concentrated one will once again be the biggest winners? Simple: by dumping the division that nearly caused its insolvency during the financial crisis, the hedge fund known as GE Capital. As part of the just announced mega transaction, GE announced an agreement to sell the bulk of the assets of GE Capital Real Estate to funds managed by Blackstone. Wells Fargo will acquire a portion of the performing loans at closing.

General Electric Knew Its Reactor Design Was Unsafe … So Why Isn’t GE Getting Any Heat For Fukushima?

General Electric Knew Its Reactor Design Was Unsafe … So Why Isn’t GE Getting Any Heat for Fukushima? (Washington’s Blog, Dec 11, 2013):

GE Engineers and American Government Officials Warned of Dangerous Nuclear Design

5 of the 6 nuclear reactors at Fukushima are General Electric Mark 1 reactors.

GE knew decades ago that the design was faulty.

ABC News reported in 2011:

Thirty-five years ago, Dale G. Bridenbaugh and two of his colleagues at General Electric resigned from their jobs after becoming increasingly convinced that the nuclear reactor design they were reviewing — the Mark 1 — was so flawed it could lead to a devastating accident.

Read moreGeneral Electric Knew Its Reactor Design Was Unsafe … So Why Isn’t GE Getting Any Heat For Fukushima?

Fukushima: Radiation, Politics And Public Relations – Part I (Veterans Today)

MUST-READ!


Fukushima: Radiation, Politics and Public Relations (Veterans Today, Nov 11, 2012):

by Leuren Moret, Dr. Majia Nadesan and Jim Fetzer (with Major William Fox)

On Friday, 30 March 2012, Dr. Majia Nadesan and Leuren Moret appeared as the featured guests on “The Real Deal” hosted by Jim Fetzer to discuss the radiation effects of the Fukushima disaster and the fashion in which it has been covered up both by the Japanese and by the American governments. Nadesan, PhD., a professor of communication in the Division of Social and Behavioral Sciences in the New College of Interdisciplinary Arts and Sciences at Arizona State University, has studied Fukushima extensively.  Moret is an independent geoscientist who has done expert studies on the Fukushima disaster, radiation problems around the world including depleted uranium.  What they had to tell us smacks of politics and public relations and is profoundly disturbing.  This is Part I of the original interview, which can be heard here:

Introduction by Major William Fox

NOTE: I invited Major William Fox (former USMCR commissioned officer), who was instrumental in arranging this interview to prepare an introduction. His key point is that the first line of defense to handle any major crisis is accurate information. Tragically, not only has accurate information been deliberately withheld from Americans regarding the Fukushima crisis, but they have also been steadily fed disinformation.  He continues:

Dr. Majia Nadesan reports in the interview below that on 16 December  2011, The Wall Street Journal wrote that the total radiation dispersed over a broad swath of northern Japan was 15% of what was released from Chernobyl. In contrast, the summary report of the RSMC [Regional Specialized Meteorological Center] Beijing on the Fukushima nuclear accident emergency stated that the total amount of radiation released from Fukushima in the first five days was equal to Chernobyl. In addition, scientists found radio-Xenon levels in the Pacific Northwest at 450,000 times average concentration levels in the weeks following Fukushima — not to mention other dangerous concentrations of radio-nuclides well beyond what any Western Europe countries ever experienced following Chernobyl.

Then we learn from Dr. Nadesan that, “…People in the Pacific Northwest actually inhaled between five and ten hot particles a day in the first month of the disaster — it could take 20 years for cancer to develop or it could take ten years or thirty years. But the significance is that the Western Press in the United States and in Europe as well as in Japan has trivialized the amount of radiation released by using terms like `no acute effects’, `no immediate health effect’…” Dr. Nadesan also comments:

“…If you look at the recently released NRC transcripts, they were projecting the dose to the thyroid of a one year old child, and they had different calculations. But one of their calculations was a thyroid dose of 30 millisieverts just from iodine to the thyroid of a one year old child annualized. And 30 millisieverts is a lot of radiation… clearly there was no effort to make any kind of recommendations to the public to keep their kids inside or to stop drinking milk or dairy, which was found in the wake of Chernobyl to be the primary vector by which small children were exposed to iodine is through milk. And that’s disturbing.”

Read moreFukushima: Radiation, Politics And Public Relations – Part I (Veterans Today)

10 Most Profitable U.S. Companies Paid 9% In Federal Income Taxes

10 Most Profitable U.S. Companies Paid 9% in Federal Income Taxes (AllGov, Aug 18, 2012):

The largest corporations in the U.S., consisting of oil, retail, banking and technology giants, paid an average of only 9% of their earnings in income taxes to the Internal Revenue Service last year.

According to the tax code, companies are supposed to pay 35% income tax. But NerdWallet determined that the top 10 came nowhere near that.

Exxon Mobil, the country’s biggest business, made more than $73 billion in 2011, but paid only $1.5 billion to the IRS.

The second largest company, Chevron, paid $1.9 billion in taxes after collecting $47.6 billion in revenue.

No. 3 on the list, Apple, made $34.2 billion. It paid $3.9 billion to the IRS.

These were followed by:

Read more10 Most Profitable U.S. Companies Paid 9% In Federal Income Taxes