Bernie Madoff whistleblower Harry Markopolos details fraud allegations against General Electric – August 16, 2019,

Well, an interesting turn of events is unfolding at GE and after watching two CNCB interviews, I’m leaning more to believing Harry Markopolos over Leslie Seidman. Why? factual research over meeting minimal standards. During Leslie Seidmans’ interview, she in the defense of the company she represents GE, first and foremost made sure she separated herself individually from the GE Corporation basing her moral arguments on what she’s experienced personally working for GE and in their defense Leslie Seidman talks mostly about GE meeting the minimum regulatory financial standards. You’d have to relisten to her statements to fully grasp what I believe will be her personal career-saving scapegoat if Harry Markopolos is proven to be right.

Bernie Madoff whistleblower Harry Markopolos joins “Squawk on the Street” to discuss his fraud allegations against General Electric, and why he believes the company is headed for bankruptcy.

GE stock rebounds after analysts come to company’s defense – CNBC

GE director Leslie Seidman, chair of audit committee, comments on fraud accusations.

Leslie Seidman, director on General Electric’s board and the GE audit committee chair, joins CNBC’s “Closing Bell” to discuss Harry Markopolos’ fraud allegations against the company.

I don’t hear the same conviction with Leslie Seidman than I do with Harry Markopolos. Now, for the record, Harry Markopolos is more of a big government guy, I myself tend to side with Private Sector and would prefer that Harry Markopolos is wrong, but my gut feeling doesn’t like the answers given by GE director Leslie Seidman. When GE director Leslie Seidman does on the attack is when she’s using the regulatory standards as her shield.

Typically companies the size of GE have some much cash lying around that they have to hide somewhere offshore, investors are often able to see this information which is usually the basis of the Bernie Sanders types to raise taxes on the rich. When a company has access of liquid capital, it shows the long term stability of the company. From my perspective, I’m not sure if GE is using cheap money to pay its debts or if it’s bankrupt, but Harry Markopolos make a good point, because if GE has so much capital why wouldn’t you loan your capital and make another entity pay you back.

GE is instead borrowing to pay its debts, it doesn’t make much sense, I understand the tax write-offs, but that’s not cheap and why bother? For a company, GE’s size $16 billion should be easy to make back, which could also even fund more projects. Now, what has me curious has to do with interest rates in the new climate, it appears that most companies that are engaging in stock buybacks are approaching paying their bills differently. There is even considered that negative interest rates could be on the horizon, this changes how companies do business. European and Japanee stocks in regions with negative interest rates are novel.

Big Companies viewing themselves as banks? essentially turning the stock market into a casino or a house of cards, because unless they’re challenged by a rival, the barrier to entry is a constant inflationary bubble. I’m not entirely sure what GE is doing, my gut feeling tells me Harry Markopolos is right, but like everyone else, I’m on the fence, because of these crazy interest rates all over the world. What I can agree with GE director Leslie Seidman on is that maybe fraud isn’t the right words to use. But then again if he didn’t use the word fraud, would anyone listen?

Clearly, GE is in trouble, their stock value has been on the decline for a very long time, but is there fraud there? Could GE simply be trying to make the numbers work? Personally, I think that’s what it comes down too. I think GE is headed for bankruptcy, GE director Leslie Seidman does really talk about the possibility of GE going bankrupt, instead, she focuses her attack on what Harry Markopolos says. That’s the main reason why my gut feeling tells me General Electric is headed for bankruptcy. Ultimately I don’t believe in government regulations when companies understand what the law is and how to appease the government regulatory authorities, they can manipulate the numbers to meet the governments minimum requirements. Now if GE director Leslie Seidman came out swinging saying something like GE is far from bankruptcy and it’s unlikely GE will need any bankruptcy protection baring something unexpected in the economy, then I’d lean towards her argument.

Interesting times ahead.