GE Security's Future and Impact of Stock Collapse

Published Mar 06, 2009 00:00 AM
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If you follow financial news, you are likely aware that GE's stock price is collapsing due to growing recognition that GE capital suffers from the same problems as the banks. There's no easy way for GE to firewall the problems in their financing business from the products business like GE Security. GE Security is famous for their internal problems (ex-GE employees consistently comment on the significant issues). One can only imagine how much problems will magnify with the fall-out from GE Capital's problems. GE may need to be bailed out, split up, etc. before all is said and done. Over the next few years, it is very likely that product development and sales expansion will be handicapped due to these corporate problems.