[Rhodes22-list] Economics

Fri Mar 23 11:06:18 EDT 2007

Hank, I for one did not blame either party. I typically don't blame parties 
because they both pretty much suck. For the most part free enterprise and 
greed did drive the risky lending. However there is also a high element in 
loan fraud from both the applicant and lenders. Now there is talk of 
government bail out ...... Wally

>From: Hank <hnw555 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: Re: [Rhodes22-list] Economics
>Date: Fri, 23 Mar 2007 09:24:46 -0400
>
>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
> > >
> > >
> >
> > --
> > View this message in context:
> > http://www.nabble.com/Economics-tf3447654.html#a9634414
> > Sent from the Rhodes 22 mailing list archive at Nabble.com.
> >
> > __________________________________________________
> > Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list
> >
>__________________________________________________
>Use Rhodes22-list at rhodes22.org, Help? www.rhodes22.org/list

_________________________________________________________________
It’s tax season, make sure to follow these few simple tips 
http://articles.moneycentral.msn.com/Taxes/PreparationTips/PreparationTips.aspx?icid=HMMartagline