[Rhodes22-list] Economics

Fri Mar 23 09:24:46 EDT 2007

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
> >
> > __________________________________________________
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> >
> >
>
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>
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