Back when I was in college in the mid 1970s, I was taught that General Electric was a good substitute for the entire US Stock Market (this was long before SPDRs and index mutual funds). GE had their hands in so many different businesses that it was as diversified as a single company could get. One of the things GE owns is NBC Telemundo, which owns MSNBC, which Keith Obermann owns.
Another thing GE does (through GE Capital) is invests money in commercial real estate, home mortgages and investments in Eastern Europe, which is falling apart faster than the United States. One of the strategies GE Capital has to keep itself “cash flow positive” is to raise the rent rates on its empty shopping centers and vacant office space.
Back before it was apparent that Candidate Obama would become President, GE’s common stock was trading around $36 a share. It’s now around $6 a share. If GE goes under, the fat lady is truly singing. Good job Mr Obermann.
Tags: GE, real estate