[Rhodes22-list] Economics in current politics

Fri Mar 23 09:59:45 EDT 2007

Ed,

I haven't finished reading the article yet, but I already have an issue with
one paragraph.

"Families who want to share in the dream of homeownership, but have
less-than-perfect credit, need and deserve a safer alternative. The U.S.
Department of Housing and Urban Development is working to modernize the
Federal Housing Administration to meet the needs of today's homebuyers."

Yeah, they can quit buying the big screen tvs and the new cars, save some
money and then buy a house 10 years down the line.  The last time I looked,
buying a house is not one of the rights provided for in the constitution.
It is a privileged and reward for hard work and fiscal responsibility.

Hank

On 3/23/07, Tootle <ekroposki at charter.net> wrote:
>
>
> 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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> >>
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> >
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>
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>
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