Posted on 06/17/2009 10:21:10 AM PDT by pleikumud
FedEx reported a larger quarterly loss Wednesday and gave an outlook well below Wall Street estimates for the current period, citing the recession's impact on package volumes and rising fuel costs that will hit its bottom line.
The package delivery company, whose shares fell nearly 3 percent, said the next two quarters would be "extremely difficult," but added that there were there were signs that the pace of economic decline had slowed.
(Excerpt) Read more at cnbc.com ...
The Socialists are determined to destroy capitalism and freedom.
I agree with them the worst is probably over. The problem will come in 2011 when Zero will dramatically increase taxes and the inflation his crazy spending will cause should be kicking up. Any recovery will likely be short lived.
WTF kind of logic is it to extrapolate ‘the worst is over’ from ‘the pace of economic decline had slowed’.
In fact, it means the exact opposite. It may be declining slower, but is still declining, thus getting worse, therefore, the worst is NOT over. Idiots.
What data is it that you looked at to come to that conclusion?
We just a letter delivered by them this morning
A number of things, including sales and inventories as well as construction and housing sales. The stock market IMHO is also a very important leading indicator. I think it is telling us that the worst is over but the recovery has not yet started.
Not since the collapse of the economy in 1929 has the government reacted in such a "reactionary", and fiscally undisciplined way. And, given the devaluation of the dollar, it may be impossible for us to escape inflation in the same way that FDR did during the '30s.
With the deficits that have been projected, we truly are in uncharted territory. Usually when navigating in uncharted waters, things don't go very well. And, some times they go absolutely disastrously.
Sales will get worse and profits will go down as Obama and the Congress stick it to Fed Ex because they are a non union shop.
So, what do you make of the massive tsunami of ARM resets happening over the next two years? Also, of the inflation adjusted home prices for the past 100 years being about half what they are now?
Then there are those sham ‘stress tests’ that the banks still failed without even taking into account the impending ARM resets?
Then, there’s the silly matter that people were living the last 15 years off ‘equity’ in houses that is gone and only really existed because of government actions inflating housing prices. Now all those folks are left with is debt. How are they going to return to getting us going with all that spending (70% of GDP)?
Then, there are the skyrocketing fuel prices IF the economy by some miracle, did actually begin to recover...
I’m not trying to argue. I’d really love for someone to make an honest case based on facts that there really is some light at the end of the tunnel that isn’t a train.
Given the damage the Socialist Obama and the Socialist Congress have done in just five months, I think it will get worse much sooner than 2011. In addition to his economic policy insanity, Obama is leaving us exposed to another 9/11. Also, there is likely to be a nuclear exchange in Korea involving Japan and/or China, a terrorist take over of Pakistan which has nuclear weapons, an Israeli attack (justified) on Iran, Russia becoming more aggressive, Mexico becoming hostile to the U.S. with armed conflicts along our border, worsening relations with China over Taiwan and Chinese (et. al.) sales of U.S. government securities. I could go on, but I suspect you see why I am not optimistic.
The stock market right now is completely decoupled from economic reality.
There are all sorts of positive signs that Fed Ex and UPS would be seeing: trucking shipments have improved, Long Beach container exports up 20%, Taiwan exports up 40%, Baltic Dry Index up 14%, Industrial Production (translating into inventories) is coming up for the lowest points since the end of the mid-70’s severe recession. It looks like things have bottomed. We’re not out of the woods, but we have at least reached a clearing that will start to show up in the numbers over the next few months. The question is not if GDP will grow in Q4 and Q1 2010. They will because of the incredibly easy comps. But what will happen after that. Very good chances for a double dip recession.
I’m sorry, but I don’t believe for one second that GDP is going to grow in 2010. And thinking it’s going to grow in Q4 of this year is laughable.
I wish I had your optimism, but there are just too many more shoes left to drop on us.
“The worst may be over” was CNBC’s Gregorian Chant for resuscitating the housing market very early in 2006, possibly even earlier.
Green Shoots™
I should know what that is, huh?
Hopefully a change in the 2010 elections will stop it. I didn’t think it was possible 6 months ago but I think it is now.
China and the other BRIC countries are actively seeking measures to decouple from the dollar. When that happens, expect a bad bond dislocation and the value of the dollar is going to plunge.
Thing I can see that can and probably will derail us.
- BRIC trading block creation (skipping dollars)
- Northeast Asian War
- IMF supernational reserve currency creation
- Cap and trade
- Obama's Health plan
- nuclear terror strike (not if ... WHEN)
- Iran civil war disrupting oil supplies
- Housing markets as various stopgap measures start failing
- Commercial housing bubble starting to implode
- Personal debt (credit cards), that bubble is starting to implode.
Yes I'm bearish for damn good reasons.
ACORN getting 5 billion in funding and the White House gerrymandering Congressional districts will stop that cold.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.