The Cerebral

After doing more research on General Electric Co. (GE), I have potentially determined the reason that the market is punishing this company. GE Capital Services (GECS), the huge financial arm of GE that provides 40% of the group's profits, is not required to mark-to-market. Thus, it has avoided the huge writedowns most commercial and investment banks.

Essentially, that means that GECS is sitting on potentially tens of billions of dollars of less valued assets that it has not been required to mark down. No one really knows what is on this company's balance sheet.