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Old 11-12-2018, 09:09 PM
 
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I had a discussion with one of my siblings regarding the state of GE and how Massachusetts may have gotten a hosing and Malloy may get the last laugh. My sis had some inside skinny from someone involved with GE who told her that people had been getting quietly laid off over a period of time, all the while Immelt was bluffing for a good deal, knowing that the company had been pretty much hollowed out.

If that's the case, then Malloy took a lot of heat unfairly and Mass gets the shaft. Did Malloy know more than he let on? Stock is down to what, eight bucks? Are pensions in trouble?

Thoughts?
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Old 11-12-2018, 09:16 PM
 
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We lost. No matter the headcount, when GE left, massive amounts in tax collected from these .1% ers fled, plus no telling how much in supplier revenue fled also, as corp hqs foster spectacular revenue for their suppliers (of hq needs).


Most corps have great eras and bad eras. Even if an hq is moving towards the latter, from a gov't standpoint, one gains squat from losing any of them.
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Old 11-12-2018, 09:47 PM
 
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Quote:
Originally Posted by BobNJ1960 View Post
We lost. No matter the headcount, when GE left, massive amounts in tax collected from these .1% ers fled, plus no telling how much in supplier revenue fled also, as corp hqs foster spectacular revenue for their suppliers (of hq needs).


Most corps have great eras and bad eras. Even if an hq is moving towards the latter, from a gov't standpoint, one gains squat from losing any of them.
Not saying the suppliers aren't getting paid, but they may not be, or payment may be slowing. I dunno, Malloy would have known how much trouble GE was in, wouldn't he? He'd certainly be aware of a decreasing work force, and thus decreasing revenues for the state. In the rearview mirror, he might have called Immelt's bluff. Maybe he didn't gain from losing GE, but he might have prevented some bleeding for the state, in the sense that the concessions and breaks that GE wanted were not warranted by the decrease in revenue to the state.

If he did know, it shows remarkable constraint on his part that he took the all the slings and darts for letting GE go and didn't divulge the true state of affairs. If it was Trump, he'd have been tweeting like a madman about "the failing GE", lol.
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Old 11-12-2018, 09:52 PM
 
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All the other GE jobs Ct has, are not as well off, if GE struggles. Common tactic in such cases are spin offs, which are bad news for employees.

That is the biggest concern.
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Old 11-12-2018, 10:22 PM
 
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Originally Posted by BobNJ1960 View Post
All the other GE jobs Ct has, are not as well off, if GE struggles. Common tactic in such cases are spin offs, which are bad news for employees.

That is the biggest concern.
In fact I think there was a spin-off, my sis mentioned that one of her friends who had worked for GE for years, was in a division that got sold off. He didn't like it, so took early retirement, through GE.
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Old 11-13-2018, 02:00 AM
 
Location: In the heights
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Well, was GE trying to get some concessions from the state? If there were heavy concessions being asked for, then CT did luck out. If not, then I don’t see why it’s any more of a negative to lose state tax revenue from a company folding or a company flatout leaving.

I will say though, Aetna being bought by CVS was some real Deus Ex Machina ****.
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Old 11-13-2018, 06:38 AM
 
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MA and Boston really didn't get hosed by GE. The city offered $25 million in tax incentives over 20 years. Included in the deal were job creation milestones and claw back provisions. The city owns the buildings that GE are in. The state offered $120 million of infrastructure improvements which were going to be built eventually. The GE move spurred the money to be spent earlier. Perhaps the state could have been able to get some other company to pay for some of those improvements.

Are GE's issues a disappointment? Of course. Boston expected a thriving company looking to bring 800 high paying jobs to the city and to be a good corporate citizen. There are still positives such as the new infrastructure and the development that was spurred in that area of the Seaport which is bringing in other companies.
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Old 11-13-2018, 09:55 AM
 
Location: Connecticut
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Originally Posted by robr2 View Post
MA and Boston really didn't get hosed by GE. The city offered $25 million in tax incentives over 20 years. Included in the deal were job creation milestones and claw back provisions. The city owns the buildings that GE are in. The state offered $120 million of infrastructure improvements which were going to be built eventually. The GE move spurred the money to be spent earlier. Perhaps the state could have been able to get some other company to pay for some of those improvements.

Are GE's issues a disappointment? Of course. Boston expected a thriving company looking to bring 800 high paying jobs to the city and to be a good corporate citizen. There are still positives such as the new infrastructure and the development that was spurred in that area of the Seaport which is bringing in other companies.
GE only transferred 200 jobs from Connecticut to Boston, not 800. The other 600 jobs were transferred to Norwalk so I would think Massachusetts would be disappointed that they did not get as much as they hoped from the deal. It was only after Jeff Imelt was ousted that the true condition of the company came out. It is sad that this once mighty company that was at the top of corporate American is struggling so badly. Jay
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Old 11-13-2018, 09:58 AM
 
Location: Connecticut
24,749 posts, read 40,362,095 times
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Quote:
Originally Posted by BobNJ1960 View Post
We lost. No matter the headcount, when GE left, massive amounts in tax collected from these .1% ers fled, plus no telling how much in supplier revenue fled also, as corp hqs foster spectacular revenue for their suppliers (of hq needs).


Most corps have great eras and bad eras. Even if an hq is moving towards the latter, from a gov't standpoint, one gains squat from losing any of them.
I am not seeing the big lose you claim. GE leaving Fairfield barely made a ripple in the area primarily because it only involved 200 jobs. The bulk of the jobs GE had in Fairfield were transferred to Norwalk so while yes, it was a loss, realistically it was not as bad as many predicted. Jay
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Old 11-13-2018, 10:23 AM
 
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Originally Posted by JayCT View Post
GE only transferred 200 jobs from Connecticut to Boston, not 800. The other 600 jobs were transferred to Norwalk so I would think Massachusetts would be disappointed that they did not get as much as they hoped from the deal. It was only after Jeff Imelt was ousted that the true condition of the company came out. It is sad that this once mighty company that was at the top of corporate American is struggling so badly. Jay
Exactly.

https://www.zerohedge.com/news/2018-...w-trading-junk

One of the commenters on the above article has an interesting perspective:

"Didn't we see something similar in the Movie "Good Fellas"? Where the mob took over a successful restaurant, loaded it up with debt, stole all the removable assets and then torched it?

We see all the CEO's loading companies up with debt, using the debt for stock buybacks to boost the price, cashing out their stock options and taking big bonuses, leaving just prior to the stock market crash (torching it).

Maybe it's just me, looks pretty ******* close to the movie."
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