[Rhodes22-list] Economics
TN Rhodey
tnrhodey at hotmail.com
Fri Mar 23 11:58:17 EDT 2007
Hank, My apologies but I do think you guys seem to take everything I say as
Bush bashing.- 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 11:18:57 -0400
>
>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
> > > > >
> > > >
> > >
> >
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> > > > >
> > > > > __________________________________________________
> > > > > 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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> >
> > _________________________________________________________________
> > It's tax season, make sure to follow these few simple tips
> >
> >
>http://articles.moneycentral.msn.com/Taxes/PreparationTips/PreparationTips.aspx?icid=HMMartagline
> >
> >
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