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FedEx chief turns negative on economy

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Fred Smith, founder and CEO-for-life of FedEx Corp. (NYSE: FDX), says that the economy is not so healthy. He should know. His company does business in almost any town of any size in almost every country in the world. So, he may have come to his point of view a little late since many experts believe that the economy has been in a recession for at least two months.

According to Reuters, Smith said "The only positive story in the U.S. economy right now is U.S. exports." He also indicated he believes there is a chance things could get better in the second half.

Smith is a good example of the inclination of many U.S. CEOs to soft pedal the fact that the economy is awful. It's as if they hope that not talking about the problem, or saying things are a little better than they seem, will make their troubles go away. It is a "head in the sand" approach that doesn't do companies and their shareholders any good because it means that management is not doing the necessary work to prepare for a tough ride.

But, a CEO who can't be pushed out has that luxury.

Douglas A. McIntyre is an editor at 247wallst.com.

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Last updated: November 27, 2009: 03:00 AM

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