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Reading the report, he seems to be dipping into "future forecasting" quite a bit. "First, a stiff recession after ten years of domestic economic growth, will s
by unreal37 7y ago
Reading the report, he seems to be dipping into "future forecasting" quite a bit.
"First, a stiff recession after ten years of domestic economic growth, will see that the next chapter in GE’s history is Chapter 11."
You can't predict a recession, or when it comes how it's going to go, so how is that "first" when it comes to discovering accounting fraud?
- deleted 7y ago[deleted]
- avs733 7y agoyeah I'm surprised as I read through this a lot of it seems predicated on assumptions of what will happen outside of GE. I'm far from a finance guru (but I did buy some holiday IHG stock last night)...but this one doesn't read as fraud as much as a time bomb that could blow up at any moment, it just hasn't yet. Fraud is an entirely different level of claim. Dishonesty about the risk...sure...probably GAAPish'ing your way into a higher than deserved stock price...sure. But I can't even parse through the reports repetitions of the same information over and over with increasing strident bolded red text and skull and cross bones emojis what is the core thesis.
- unreal37 7y agoHe's saying in two years they'll have to disclose losses that they don't have to disclose today. Um, OK. He's saying they don't have the cash in the bank to make a payment that they have coming due next year. Um, OK. Not really fraud, no. I think this is more of a "hope the stock falls in the future so we can get rich" kind of thing.