What Does This Mean to You?

[ATeam]

Today: NEW YORK (CNNMoney.com) -- "The housing finance crisis and spiraling energy costs will remain a drag on the U.S. economy for the rest of the year, Federal Reserve Chairman Ben Bernanke told lawmakers in a gloomy presentation about the economic outlook."

In other news ...

U.S. Dollar hovers near all-time lows.

Unemployment numbers trend upward.

Major investment bank (Bear Stearns) collapses, Feds step in to avert credit market meltdown.

Foreclosure pace accelerates, housing prices continue to decline, no bottom in sight.

Credit availability tightens and cost rises for credit-worthy borrowers.

IndyMac bank run and FDIC siezure prompt stability fears. U.S. bank stocks plunge.

Federal entities react to Fannie Mae and Freddie Mac losses; formulate rescue package to avert mortgage market and economic meltdown.

GM stock near 50-year low; company shutters plants, cuts jobs, eliminates dividend.

National average diesel prices set record highs.

Truck carriers going out of business at tripple the year-ago pace.

American Trucking Associations says freight volumes remain mixed across the trucking industry.

 

[greg334]

d e p r e s s i o n

 

[x06col]

I'd say it means most of the contractors and drivers i worked with will wish they had stood a bit closer to the plate and hit the ball a bit further, or, more often, or, sump"in more. The $crew'in the pooch in more ways than just work ethic, prolly'll come back to roost. Sooner than later.

 

[spudhead911]

It kind of seems like the U.S.A. is going the way of the Roman Empire, to it's complete downfall. It is an historical fact that all empires fall, I kind of think it's our turn. It just took us less time than the others, due to the greed of our elected officials, and ourselves. Can we save ourselves and our country? I think we might have a very slim chance, if we wake up, and take control of the government that has been sucking us dry for the last thirty years. Maybe it's time for another American Revolution, only this time one against our own government. If this is the only course we have, count me in.

Just My Opinion

 

[LDB]

It means having the liberals in charge sucks.

 

[late4dinner]

I didn't know the liberals were in charge. Well, I learn something new everyday.

 

[greg334]

I reread the list of doom and gloom that Phil threw out there and thought, the problem is me, you and everyone who votes.

For example, we should be screaming that we bailed out Bears stern, it should have fell and other companies picked up the pieces.

GM has been warned and warned and warned and they still don't get it, now they got smacked hard on the a** and crying about it but they are coming out with a car that gets 45 mpg in 2010.

IndyMac bank made loans that are called Ninja loans - loans without assets backing them, so we the tax payer is bailing out another company where the officers should be going to jail. I am wondering if the Feds are doing a thorough audit or just one to cover their a**.

Fannie Mae and Freddie Mac are two entities that need to go away safely. They both outlived their use and actually hinder free markets.

"Credit availability tightens and cost rises for credit-worthy borrowers." - Well not true, I can get a loan for a new car, new truck and a house and I am considered Unemployed. I can't see the rising cost through interest rates being an issue because the interest rates are very low and need to return to 8% and 10%. By the way look at what the EU and Russia has been doing with their credit markets.

"U.S. Dollar hovers near all-time lows." - Well Duh! either you have low interest rates or strong dollar, I want a strong dollar.

We are heading for a depression, we are in a real recession right now and a lot of real experts are saying that quietly. If we don't do something about our congress, depression of the 30's will look like a mild recession.

The right question would not be what does this mean to you but rather What are you willing to give up to change it?

 

[Jack_Berry]

it means more companies than budweiser and miller will have overseas owners? it means less of america owned by americans?

 

[late4dinner]

Greg, I agree with you 99%. the Bears Stern bailout. Isn't that the deal where the Fed working with Chase Bank stepped in to take them over. If I am correct, this was done in the blink of an eye without any info hitting the street before hand. The only bailout that I can remember ever being repaid to the Government was Chrysler. Can anyone remember another???????????

 

[greg334]

Greg, I agree with you 99%. the Bears Stern bailout. Isn't that the deal where the Fed working with Chase Bank stepped in to take them over. If I am correct, this was done in the blink of an eye without any info hitting the street before hand. The only bailout that I can remember ever being repaid to the Government was Chrysler. Can anyone remember another???????????

Well everything that the government is doing are clear steps to nationalizing the banking system, once we get to that point, it is all over.

As for Chrysler, the government didn't give them a dime, they just were the security for the loans - big BIG difference between a bailout and a loan gaurentee.

OH I heard this one a minute ago, GM is hurting in the domestic market but their international market is booming.

 

[ATeam]

Interesting replies all, but macro-economic and political opinions was not what I was getting at. Allow me to rephrase the question from "What does this mean to you?" to "What does this mean FOR you personally?"

Has your life changed because of the above developments?

Has your business changed?

What changes, if any do you expect?

I'm not going to say times are tough, but I will say times are different than they were no so long ago. With more people casting about for other employment opportunties, some will discover and look at expediting for the first time. Expediters of all experience levels sharing their story and plans will provide important and meaningful information to the first-time lookers who may see expediting as an opportunity.

 

[LDB]

Chrysler wasn't a bailout. The government didn't funnel in mountains of cash. The government made loan guarantees. Iacocca bailed Chrysler out with good management (relatively speaking) so the loans didn't default and we didn't pay for it.

 

[ATeam]

What does this mean for you personally?

For Diane and me personally, expediting feels different than it did when we entered the business five years ago and bought a truck two years ago.

Before, we were thrilled to be in the business and doing as well as we were. Now, we are still doing well, but it is not as worry free as it was. I expect the economy to deteriorate more and freight to consequently slow.

It's a bummer to think last year may be better than this year, and this year may be better than next. Yet we still find great joy in our life and work. In prior years, we made hay while the sun shined and have no fears of washing out as more clouds gather.

Has your business changed?

Not really. Because of additional personal time we are taking off this year (a series of dental appointments and more events at home), we cannot easily gauge this year's freight volume compared to last. We are not making as much money, but attribute that to our increased off time.

What changes do you expect?

Only changes in pace. We expect to stay in our same truck, with the same carrier, doing the same kind of work, and continuing to grow our net worth (we are in it for the money, among other things). We may do all of the above at a slower pace, but do them we will.

Oh yea ... it also means I am going to the Expedite Expo for the first time. I know of no better place to meet the people and get the info needed to chart our course into the future. This upbeat news article about Ohio's largest truck show is a welcome breath of fresh air.

 

[greg334]

Interesting replies all, but macro-economic and political opinions was not what I was getting at. Allow me to rephrase the question from "What does this mean to you?" to "What does this mean FOR you personally?"

Has your life changed because of the above developments?

Has your business changed?

What changes, if any do you expect?

We know what you meant, we are not dummies.

Everything listed AFFECTS us personally even though we are looking at things from either politically based or an economic point of view and comment according to how we perceive the situation. In a sense, business is about meeting the challenges of change; nothing is static and never should be. Many of us look at these things with concern and try to hedge the problems or prepare to leave the industry all together.

Some look at closing trucking companies as more opportunity and a far needed adjustment of the industry to equalize things. We are in fact a bloated industry. With the higher fuel prices, many people with poor money management and great expectations are dropping. The same goes for many of the marginal trucking companies; they went under because they can’t afford to run without a capital reserve that was there before with really loose credit markets. What this is doing is allowing the market to become a carrier’s market like it was before when Roberts was going strong – departing the shippers market.

The only problem with this is being a carrier’s market is simply that many companies will not take advantage of it and still pass as much of a savings off to the customer than what is really is necessary.

I'm not going to say times are tough, but I will say times are different than they were no so long ago. With more people casting about for other employment opportunities, some will discover and look at expediting for the first time. Expediters of all experience levels sharing their story and plans will provide important and meaningful information to the first-time lookers who may see expediting as an opportunity.

Well Phil, but it is true times are tough. May not be for you, and that is expected, you are at the top of your game, never being at the bottom so your perspective is only from one company, one position in that company. For some, it is a do or die situation, these people are sticking it out in hope for a better market – some are doing fine while others are losing their shirts and trucks. For many who are not in any specialized service truck, i.e. WG, there is higher competition for work which means lower rates all the time and in some cases the companies are focusing on higher profit margin freight, leaving other freight as a filler to keep some trucks moving.

ME? I changed companies because they departed from what I and others consider a core operating principle and shifted their focus onto internal solutions with the external solutions as a secondary mode of profit. They knew what was going to happen, they have responded and will continue to respond to the market changes but they will not speak about these things until after they implemented them. I think that the more recent change and what I know is up and coming makes my decision more than just justified but leads me to think it is actually a good move because of the lost opportunity I see for them and the gain of opportunity I see for me.

 

[csands007]

It means having the liberals in charge sucks.

This supposed to be conservatives we had for 6 years thought they were liberals way they printed money to cover what they spent, yes blame this depression on the liberals cover your eyes to the truth, Bush did for US what he did for Texas, but did it worse, I'm an independent don't like either party now.

 

[davekc]

Has our business changed?

Yep. Business model is different as costs to operate have changed. Basically, what we may have considered a year ago as a profitable load, may not be this year. Operating expenses are higher, so like others, we have to operate within our margins.
Personally...........invest.
Might sound a little crazy, but this is the over the next 6 months to really look at your personal investment strategies.
That of course is my personal opinion based on my circumstances. May not be applicable to others.
Many investments are getting cheaper by the day. Worked several times before when the economy tanked, don't see a reason to not go with the same plan.