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.











Reader Comments (Page 1 of 1)
4-13-2008 @ 2:10AM
bryon said...
i'm still optimistic, every few decades the economy turns a new page, during which many industries are flushed down the drain and new ones emerge out of new technology and wisdom. i'm hoping the airline industry is kaput because they gave up on improving their services and business a long time ago, and i imagine they'll be replace by spaceage inovation long due. banks will be replaced by a new form of finance, the auto industry will have no choice but to die and allow electric non-break downable vehicles to replace the old slow, dirty, noisy and powerless gas engines that never could do both torque and speed together anyhow. many people will lose their jobs but just as many new jobs will appear. i believe the recesion will continue for several years at which point we'll hit the worst bottom the country has ever seen. take advantage of the good years now, and pray for those who are not preparing for the worst depression ever.
4-13-2008 @ 2:13AM
bryon said...
most likely they're not too far off because it seems like this recession is going to be a slow and gradual one, at least for those of us who are not losing our jobs, but i do believe that the end of this recession, or should i say outcome, is not going to be a good one even though i believe it is still a good long ways away. america keeps walking farther and farther out onto thinner and thinner ice.
4-13-2008 @ 12:23PM
william lindblad said...
It is only in the last two or three months that the truth has begun to sink in. A good deal of optimism still remains on wall st, but this is the last vestige and that too, will soon wane.
It would be nice to see this have a rapid turnaround but all the active pressures are working in the opposite direction. We have banking, fuel and food and I expect inflation to follow as it is present in Europe and China. Trade in our time is truley world and conditions that prevail elsewhere are sure to reach the U.S., just as sure as our economic woes will reach them.
4-13-2008 @ 8:03PM
John said...
Realistically we are in the beginning of a serious economic downturn. This would be clear to anyone with half a brain if they would get past their political ideologies and look at EVIDENCE. The Republicans don't want to admit how badly Bush and Greenspahn and Benarke have botched things up because they have this emotional need to believe that Bush walks on water, heals lepers and levitates on alternate Saturdays. Instead, he has sent the U.S. economy into a downturn which will result in mortgate riots, possibly food riots, and quite possibly civil war. This isn't my prediction. It is the prediction of the head of the World Bank who is predicting food riots in the U.S. within 4 years. If there is anyone left to write history, Bush will go down as the worst president in U.S. history. Hopefully, he'll go down as the ex-president in U.S. history to be tried and convicted of his crimes and sentenced to life imprisonment in a Federal Penitentiary for his war crimes against humanity in torturing people and starting a needless war, and for defrauding the American people. Hopefully, his cell-mates will be Cheney, Rumsfeld, Ashcroft and Gonzales, with Condi in the women's side of the pen.
5-10-2008 @ 8:03PM
John Maurice said...
What about the lawsuits that are hurting FedEx. FedEx has exhibited a Defiant attitude. In a group meeting a manager said, "FedEx has a team of lawyers, sue us, we will win!" A FedEx manager denied me time off to attend my Father's Funeral. He also denied a Hispanic employee time off to attend his StepFather's Funeral. A fellow employee informed me that this manager gave a white employee time off to pay court fines for writing bad checks. This is the most INHUMANE TREATMENT an employee can experience at his workplace.