GE is dead in the water at this point, so if Barclays has a lot of their debt GE is screwed. On March 29 all of Barclay's EU assets are immediately frozen and they lose tons of worth. If they have GE's debt they demand it early. With a negative cash flow, low credit rating and debt that's more than 150% of the company's net worth GE can't pay it back. GE defaults.
Then other banks worry that other big companies can't pay them back. They panic and demand their money early. Those companies can't pay and they go under. and crisis ensues
Keep in mind this is clearly a worst case scenario, but something like this is actually a possibility. What do you think happens to the market?
Submitted January 06, 2019 at 12:32PM by RealStratBeckerYT http://bit.ly/2VBjc9x
No comments:
Post a Comment