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Property Frights Drive GE Capital Punishment

Wall Street Journal Original article ›

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GE stock is down 42% this year because of doubts about GE Capital. GE Capital has on its balance sheet large exposure to commercial real estate investments that could suffer greatly in a deep recession. It also relies on market funding which is aserious drawback in current credit conditions with large amounts of long term debt, of $133 billion this year and next year- coming due. This twin concerns make investors skittish about GE and don't trust the triple A rating for GE Capital.


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