[Rhodes22-list] Economics in current politics

Fri Mar 23 09:35:45 EDT 2007

Hank:

Read this:

http://www.sunherald.com/mld/sunherald/business/16957824.htm

and this:

http://www.allamericanpatriots.com/m-news+article+storyid-21642.html

and your simple answer does not match current Washington politics

Ed K
Greenville, SC, USA

Hank-5 wrote:
> 
> How is this an issue of either political party?  It seems to me that this
> is
> just a consequence of the free enterprise market.  Banks wanting to get
> more
> business came up with innovative ways to provide home financing.  They
> were
> taking a gamble that interest rates would stay low and folks could
> continue
> to pay.  In some cases, it was a pretty dumb business decision on both the
> bank's and the home buyer's part.  Now  they both will have to pay the
> consequences.
> 
> Hank
> 
> 
> On 3/23/07, Tootle <ekroposki at charter.net> wrote:
>>
>>
>> Wally:
>>
>>     What you have said is particularly true where house values are
>> overvalued in anticipation of increasing in value.  I suspect a big time
>> shake out coming.  However, you blame Bush.  Come on now, where were the
>> Democratic critics a couple of years past.
>>
>>      Bush's stated intent was to allow anybody who really wanted a house
>> to
>> be able to get one.  His ecomomics have helped that goal.  Now it is up
>> to
>> them to keep them.
>>
>>       Not all will.  However, I suspect many will.  The current default
>> rate in the sub prime market is quoted as 23%.  Truth is it will go up in
>> a
>> recession.  Remember some of the creative sub par financiing was pure
>> speculation.
>>
>>       There will be some creative ways to help prevent defaults, but that
>> does not answer your premise, why was the situation permitted.  It is a
>> general governance issue and legislators of both parties did not want to
>> say
>> or do anything.
>>
>>       What is more interesting to look at is the declining value of the
>> dollar.  They say inflation is under control.  However, what you get for
>> the
>> dollar is less.  So the value of some of those homes under duress is not
>> the
>> same value in dollars as a few years ago.  Hum.  Another way to hide
>> facts.
>>
>>       This is not a Bush issue, but the way the politicians and press
>> hide
>> the truth.  If it were a liberal democrat in office, they would be
>> looking
>> elsewere, and so would you.
>>
>> Ed K
>> Greenville, SC, USA
>>
>>
>>
>> TN Rhodey wrote:
>> >
>> > Brad, You have been to be busy being a cheer leader for Bush to notice
>> our
>> > economy is unbalanced. I told you several months ago that the mortgage
>> and
>> > home industry was "a house of cards and heading for huge correction".
>> You
>> > responded and said your home values are fine in Memphis .....
>> >
>> > The largest sub-prime lenders are in trouble and in the last 90 days
>> some
>> > 30
>> > mortgage banks have closed or pulled out of sub-prime lending. The
>> other
>> > shoe will drop when all the folks with low Interest Only payments,
>> balloon
>> > 2
>> > nds, or ARMs have to refinance and find they can not because they owe
>> more
>> > than the home is worth. They will be stuck with a rising payment they
>> can
>> > no
>> > longer make. The common trend in home buying has been 100% financing.
>> In
>> > the
>> > old days you needed to have 20% or so. Being upside down equity wise in
>> a
>> > car is bad...evenworse when you are upside down in equity in you rhome.
>> > Many
>> > folks are upside down in equity in their home and 2 car payments. Like
>> i
>> > said we are building anice house of cards.
>> >
>> > Do a google search for "sub prime lending woes".
>> >
>> > The leaders of companies like New Century maybe looking at jail time.
>> This
>> > is tied into our overall economy in more ways than most understand.
>> >
>> > Wally
>> >
>> >
>> >>From: "Brad Haslett" <flybrad at gmail.com>
>> >>Reply-To: The Rhodes 22 mail list <rhodes22-list at rhodes22.org>
>> >>To: "The Rhodes 22 mail list" <rhodes22-list at rhodes22.org>
>> >>Subject: [Rhodes22-list] Economics
>> >>Date: Thu, 22 Mar 2007 08:48:18 -0500
>> >>
>> >>Hunker down boys and girls and protect your investments - the sky isn't
>> >>falling but we're going to have a low ceiling for awhile.  Follow any
>> >>benchmark you want but this is one of the best predictors out there.
>> The
>> >>understatement is "automotive and housing", that is a huge chunk of the
>> >>economy and both are going through major corrections. Don't believe
>> that
>> >>last sentence, it's boilerplate "the world would be safe if it wasn't
>> for
>> >>those damn pilots" bullshit.  Brad
>> >>
>> >>--------------------------------
>> >>
>> >>    Slowing Economy Takes a Toll On FedEx's Quarterly Results
>> >>------------------------------
>> >>
>> >>FedEx Corp. reported Wednesday that its earnings dropped 1.9% in the
>> fiscal
>> >>third quarter, stung by the slowing economy, lower fuel surcharges and
>> >>severe winter weather.
>> >>
>> >>The package-delivery company, which is seen as a bellwether for the
>> overall
>> >>economy, also lowered its outlook for fiscal fourth-quarter earnings,
>> >>tightening both ends of the forecast range by a nickel share. FedEx
>> also
>> >>said that, while its long-term goal remains 10% to 15% annual growth in
>> >>earnings per share, growth during the coming fiscal year may fall short
>> >>because of the sluggish economy and investments that FedEx expects to
>> make
>> >>in its business.
>> >>
>> >>"The U.S. economy grew at a lower rate than we expected in the third
>> >>quarter, and we saw continued adjustments in the automotive and housing
>> >>markets," FedEx Chairman, President and Chief Executive Fred Smith said
>> in
>> >>the press release. "I believe, however, this represents a healthy
>> >>transition
>> >>for the economy as it phases into a more sustainable growth rate.
>> >>
>> >>"FedEx is in excellent position to take full advantage of global
>> >>economic-growth trends and deliver overall outstanding financial
>> results
>> in
>> >>the long run," Mr. Smith said.
>> >>
>> >>The Memphis, Tenn., company earned $420 million, or $1.35 a share, in
>> the
>> >>quarter ended Feb. 28, compared with $428 million, or $1.38 a share, a
>> year
>> >>earlier. Revenue rose 7% to $8.59 billion.
>> >>
>> >>The results, which marked the first profit decline for the delivery
>> giant
>> >>in
>> >>more than three years, were at the high end of the $1.20 to $1.35 a
>> share
>> >>forecast range the company set in December, when it reported
>> second-quarter
>> >>results. Earnings topped analysts' forecasts, while revenue missed
>> >>expectations. Analysts polled by Thomson Financial expected, on
>> average,
>> >>earnings of $410.1 million, or $1.33 a share, on revenue of $8.7
>> billion.
>> >>
>> >>FedEx previously said the typical surge in holiday-related freight
>> volumes
>> >>was "a bit delayed," the latest sign that a slowdown starting in the
>> summer
>> >>and fall at many railroads and trucking companies may be spreading to
>> >>package carriers that handle many shipments on the last leg of their
>> >>journey.
>> >>
>> >>FedEx's average daily package volume in its express and ground
>> businesses
>> >>rose 4% in the latest quarter, compared with the year-earlier period,
>> >>helped
>> >>by growth in international express.
>> >>
>> >>Revenue in the express business rose 3% to $5.52 billion, and revenue
>> in
>> >>the
>> >>ground business increased 12% to $1.52 billion. FedEx's freight revenue
>> >>rose
>> >>30% to $1.1 billion. The Kinko's retail-shipping and office-supply
>> >>business,
>> >>however, continued struggling, with revenue declining 3% to $485
>> million.
>> >>
>> >>FedEx expects to earn between $1.93 and $2.08 a share during the
>> current
>> >>quarter. Its prior guidance had been $1.98 to $2.13 a share. Analysts
>> >>polled
>> >>by Thomson Financial expect, on average, for the company to earn $2.03
>> a
>> >>share during the quarter.
>> >>
>> >>Excluding second-quarter costs associated with the new pilot labor
>> contract
>> >>at the FedEx Express segment, the company expects to earn between $6.70
>> and
>> >>$6.85 a share for the year. Its prior guidance had been $6.60 to $6.90
>> a
>> >>share.
>> >>
>> >>*Wall Street Journal*
>> >>
>> >>*3/21/2007*
>> >>__________________________________________________
>> >>Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>> >
>> > _________________________________________________________________
>> > 5.5%* 30 year fixed mortgage rate. Good credit refinance. Up to 5 free
>> > quotes - *Terms
>> >
>> https://www2.nextag.com/goto.jsp?product=100000035&url=%2fst.jsp&tm=y&search=mortgage_text_links_88_h2a5d&s=4056&p=5117&disc=y&vers=910
>> >
>> > __________________________________________________
>> > Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
>> >
>> >
>>
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