[Rhodes22-list] Economics

[Rob Lowe]

Wally,
Clarification please.  Did you intend to say in the old days you needed 20%
financing or 80% financing (20% down)? - rob

----- Original Message ----- 
From: "TN Rhodey" <tnrhodey at hotmail.com>
To: <rhodes22-list at rhodes22.org>
Sent: Friday, March 23, 2007 8:27 AM
Subject: Re: [Rhodes22-list] Economics


> 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*
> >__________________________________________________
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>
> _________________________________________________________________
> 5.5%* 30 year fixed mortgage rate. Good credit refinance. Up to 5 free
> quotes - *Terms
>
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>
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