[Rhodes22-list] Economics

Fri Mar 23 11:18:57 EDT 2007

I agree with you on this, Wally.  Although I have to admit that the way you
started off your previous post to Brad gave the impression that you were
blaiming Bush.

Hank

On 3/23/07, TN Rhodey <tnrhodey at hotmail.com> wrote:
>
> 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.
> > >
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> > >
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>
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