General Electric (GE) Taps New Low, After Briefly Falling Into Single-Digits

Shares of General Electric (NYSE: GE) fell by another 5% today to close at $10.06, after briefly falling below $10 per share earlier in the session. It is another new 52-week low for the once venerable blue-chip.

GE's stock can't get off its back.

It has been assumed that a dividend and rating cut is baked into the pie, but the stock continues its free-fall. What now? It appears investors are increasingly worried about GE Capital as the economy deteriorates.

GE has been reducing the leverage of the GE Capital unit and increasing liquidity, but investors are worried about those damn legacy loans. As would be expected, deliquincies at the commercial and consumer level are rising significantly. With the economy in free-fall, will this ever end?

GE Capital is still throwing off cash, but not nearly at the rate it was. GE sees GE Capital income of approximately $5 billion in 2009, versus $8.6 billion in 2008. Still many see the $5 billion figure as high.

If the Warren Buffett investment is any sign, GE will survive. What it will look like after all is said and done is another story.

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