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------------------------------------------------------------------------------------------------------------- Headlines--- Pictures from the Past---1986-Memel-Lucarelli CORRECTION:
ELA Dues Minimum $2200
T-Bill Rates
mixed in latest auctions
Omni National
Bank Creates Omni Capital Streamlined
Sales Tax Agreement Features Equipment
Leasing Jim
Meinen Also Now Looking for Money for
IDS GreatAmerica
Names Goddard New VP/GM Med. Leasing Group Consumers
Out In Full Force on Black Friday Manufacturing
Shrank in November Stalwart Anchor City for Bay Area Economy
Special:
Losing the Faith
U.S.Banker Magazine ####
Denotes Press Release EXTRA—EXTRA-----New Prez Demo Candidate Kerry Pays $75 a haircut,
but the flap is the same hair dresser
charges Hillary Clinton $150. ------------------------------------------------------------------- Pictures from the Past---1986—Memel-Lucarelli
Western Association of Equipment Lessors Funding
Source participants Larry Memel(left)
and Tony Lucarelli(seated center) of Charter
Equipment Leasing, Beverly Hills, CA,
discuss services with Forum attendees(
not identified). (Leasing News has asked all the associations
to send past magazine or pictures, as
well as readers to send us by e-mail or “snail” mail
photographs. The invitation is still open. editor) _____________________________________________________________________ CORRECTION: ELA Dues Minimum $2200 UAEL Raises Dues, Service Members Hit the Hardest by Kit Menkin LA QUINTA, Cal. -Following the Equipment Leasing
Association (ELA) announcement of increasing
its minimum membership dues from $1200
to $2400, Kit: Please note: Our min. dues are $2200 NOT $2400.
Thanks, Michael Michael Henderson Director, Membership & Marketing Equipment Leasing Association 4301 N. Fairfax Drive, Ste. 550 Arlington, VA 22203 703.527.8655; 703.527.2649 (Fax) mhenderson@elaonline.com; http://www.elaonline.com --------------------------------------------------------------------------------------------------------- Classified Ads---Jobs Wanted (Web Trends reports this site gets an average
of over 800 visitors---not hits, individual
users, each day. The Leasing News website gets over 3,500 individual
users and over 18,000 hits a day, not counting our e-mail
mailing to 5,000 readers.) Sales: St Lucie, FL Sales, credit, doc. exp.w/top communications
skills. Exp. large territory management
from home office. Various industries;
golf equipment, construction, ff&e,
computer related, and others. Sales achiever.
Email:David34983@aol.com Sales: Louisville, KY I have been in leasing/financing of construction,
machine tool, and mfg equipment for 20+
years. Traveled KY, IN, OH and TN. Email:kyle90@msn.com Sales Manager: New York, NY I have over 25 years owning an independent leasing
company that specialized in truck leasing.
Tow trucks, Limos, ambulances, tractors,
etc.. Email:rfleisher@rsrcapital.com Sales Manager: Atlanta, GA 30 years in transportation Finance with strong
management/ sales background. Represented
company on national & region markets.
Started two successful operations- produce
profits and growth. Email:pml@mindspring.com Sales Manager: Seattle, WA Senior level sales professional w/ (20) plus
experience in mid market financing &
leasing. The last (8) plus years being
self employed in middle market brokerage.
Email:markhenley@qwest.net Sales Manager: Atlanta, GA Professional. finance mgr. w/formal credit ed./
reg. vp/ secured/unsecured commercial
loans/ direct end user network/equip.
leasing/structuring small,mid,big ticket
transactions. 10+ years NE & SE. Have
vendor servicing w/existing and active
network of accounts will bring with me.
Email:AlanAustin2000@msn.com Senior Management: Long Island, NY Degree Banking/Finance. 13 years leasing exp.
Now prez young leasing company where promises
were not met. Interested in joining established
firm with future. Email:bob33483@yahoo.com view all job wanted and help wanted ads: http://65.209.205.32/LeasingNews/JobPosting.htm ------------------------------------------------------------------------------------------------------------ Bulletin Board Complaints 12/3/2002 Michael Granieri and Associates Miltown, New Jersey http://www.granieriassociates.com/ Mr. Granieri is a member of the Leasing News
Advisory Board and very well-known in the leasing industry as a trainer. He has written many articles for the Monitor
and Leasing News. http://www.leasingnews.org/articles.htm#leasecloser October 12 we received this e-mail: Name = John
McGee Address = 2249 Broadway #8 City = Grand Junction State = CO Zipcode = 81503 Phone = 970-245-4600 Fax = 970-2454684 Email = jmcgeemesa@aol.com “I sent two new employees to a Granieri Leasing Seminar in Denver. The teaching
was a extremely poor as the instructor,
a Michael Granieri was incapacitated and
unable to deliver the course . My students
left after a start time of 09:00 and Michael
asked them to take two 30 minute breaks prior to the lunch break @ 11:30. The students left prior to lunch
time as even new
sales reps knew they were wasting
their time and money for a substandard
course. Discussions with Michael Granieri 8/16/02
indicated that a full refund was forthcoming
as he was sick and unable to speak. I
agreed with him that a full refund of
tuition would be fair. “He
has refused to return phone calls, e-Mail
and faxes or refund the funds paid for
the course as he agreed . “I would alert all trainers to avoid this unethical
firm and to AVOID THIS FIRM AS A TRAINING
RESOURCE FOR THE LEASING INDUSTRY.” Leasing News spoke with Mr. Granieri since this
e-mail with promises of “taking care of this.” He had a case of “food poisoning” before the event. He also stated his health had not been very good since the
incident. “Please pull up a 10/12/02 post that you have held pending a response
from Mike Granieri. Per you email 11/20 /02 I have
been on hold awaiting any response until after the holiday . You need
to publish this under the " Fair
and Honest Reporting " guidelines
that you publish.” John McGee Mesa Financial Services 970-245-4600 12/3./2002 “I registered two employees for his Top Gun
seminar which he was planning for Charlotte,
NC October 7th. On the 4th late in the evening he left me a
message saying he had to cancel the seminar
due to lack of attendance. He rambled on about people backing out. He said he was planning on rescheduling it
for later in Oct. or early Nov.
He advised we could attend one
of those or be refunded our fee and pay
again if we decided to attend later.
I left him a message and sent him
an e-mail advising we would consider attending
a future Charlotte date if we could but
refund the Visa charge in the mean time. I never heard from him again. I sent 4 e-mails and 4 - 5 voice messages.
The last VM I advised I would report this
to the National Association of Lease Brokers
and you.
To this date I have never heard
from him.
I filed a complaint with my credit
card company who has temporarily refunded
my $320 fee.” Stan Ragley - Leasing Resources Leasing News spoke with Mr. Granieri on two
occasions where he advised Mr. Ragley not to cancel the credit item, that he would
send a check. 12/03/2002 “I have not heard from Mike since he left me
a VM on Friday evening October 4th.
That's when he told me the class
was cancelled for the October 7th and
that I could have my money back or reschedule
for another class. “I received a credit from Bank of American,
on my Visa, and they will chase him for
their money.” 12/3/2002 Triangle Financial Services Westmont, Illinois April 23, 2002 Kriti Guin dba Smouth You of
Humble, Texas entered into a lease agreement
with Triangle Financial Services.
She signed the lease papers and
sent in a check. for $1,065.56. Another vendor got involved, delivered the
equipment, and then there is a period of time. Kristi Guin says she never told the vendor
to deliver nor did Triangle Financial. Leigh Morris of Triangle Financial Services
said another contract was sent, but during this period she
moved to Oklahoma.
The equipment was for treating skin abrasions. The situation had changed and the original
funder evidently did not want to do the lease to the new address.
In the meantime, the vendor wanted to get paid and was seeking return of the equipment.
Leasing News advised her that she should either pay for the equipment
or allow the vendor to pick up the equipment or have the vendor find another leasing company.
Triangle Financial Service refused to return the deposit, sending an unsigned form
that allegedly allowed them to keep the money if the lessee “breached the contract.”
Whether the addendum was signed or not, Leigh Morris states the lessee moved
and changed the situation.
The lessee says Triangle Financial Services did not perform
in a timely manner and therefore the deposit should be returned. Leasing News for almost a month tried to negotiate a settlement; however, the complaint appears
legitimate so we post it.
We have asked Mr. Morris for a statement many times
to post with the complaint, and after waiting two weeks, this is now posted. T-Bill Rates mixed in latest auctions By Associated Press WASHINGTON (AP) Interest rates on short-term
Treasury bills were mixed in Monday's
auction with six-month bills rising to
the highest level in a month while rates
on three-month bills were unchanged. The Treasury Department auctioned $14 billion
in three-month bills at a discount rate
of 1.210 percent. Another $15 billion
in six-month bills was auctioned at a
discount rate of 1.290 percent. The three-month rate was unchanged from last
week, when it had risen to the highest
level since Nov. 4. The six-month rate
was up from 1.265 percent last week and
was the highest since 1.395 percent on
Nov. 4. The new discount rates understate the actual
return to investors 1.231 percent for
three-month bills with a $10,000 bill
selling for $9,969.40 and 1.316 percent
for a six- month bill selling for $9,934.80. _______________________________________________________________ ############ ################################################### Omni National Bank Creates Omni Capital Stephen Klein, the Chairman and CEO of Omni
National Bank ("ONB"), announces
the formation of Omni Capital which will
provide nationwide equipment leasing and
financing solutions to middle market companies.
"ONB's philosophy is to form
business lines in unique or underserved
markets and to hire exceptional people"
says Klein, "Omni Capital will serve
a valuable niche in what can be perceived
as a commodities market and we definitely
have the right team in place to build
our leasing organization." Omni Capital will report into Charles Barnwell
at ONB.
According to Barnwell, leasing
is an important complement to a financial
institution: "We believe that Omni
Capital will be a valuable addition to
ONB both for its ability to generate quality
leasing transactions and for its fee income
potential." Omni Capital will be headed by Jule Kreyling,
President, who previously formed and managed
a middle market leasing division for American
Equipment Leasing (a subsidiary of European
American Bank) based in Reading, Pennsylvania.
"We are very excited about
this opportunity," says Kreyling
"in Omni, we have a partner that
has proven experience, an entrepreneurial
framework and a vision for the future."
According to Kreyling, Omni Capital
will focus on originating transactions
in the $100,000 to $3 Million range: "Over
the past few years, many equipment lessors
have retreated from the middle market
arena, either to focus on large, highly
structured transactions or some have simply
exited the market altogether."
"We believe the middle market
is underserved and while we will look
at any transaction that makes sense, we
will focus on our core, middle market
customer constituency." Daniel Frankel will lead Omni Capital's capital
market efforts and Mark League (based
in Huntsville, AL), Mark Myslinski (based
in Philadelphia, PA) and Beth Maguire
(based in Atlanta, GA) will head up direct
origination efforts.
Andy Gerot has been hired to oversee
operational functions. Per Kreyling, the key to success in any organization
is the quality of its people: "I
am thrilled with the team that Omni Capital
has assembled."
"In our group of six, we have
two attorneys, two MBAs, a CPA and over
sixty years of combined leasing experience." "All of us have worked together for many
years at both American Equipment Leasing
and Textron Financial Corporation and
we are excited about the prospect of building
a first rate leasing operation." Omni Capital will be based together with ONB
in Atlanta, Georgia.
ONB is a North Carolina Chartered
bank with a North Carolina branch network
and significant operations in both North
Carolina and Georgia.
For more information, please contact
Jule Kreyling at 678-244-6376, Fax 770-350-1300,
or email: jule.kreyling@onb.com Other Contact Information: Daniel Frankel, Vice President: phone 678-244-6377,
email: dfrankel@onb.com Mark League, Vice President: phone 256-755-0514,
email: mleague@onb.com Mark Myslinski, Vice President: phone 215-822-2278,
email: mmyslinski@onb.com Beth Maguire, Regional Manager: phone 678-244-6378,
email: bmaguire@onb.com Andy Gerot, Assistant Vice President: phone 678-244-6375 email: agerot@onb.com ############ #################################### Streamlined Sales Tax Agreement Features Equipment
Leasing The Equipment Leasing Association (ELA) welcomed
the adoption of the Streamlined Sales
and Use Tax Agreement by the Streamlined
Sales Tax Implementing States. The Agreement
now being sent to state legislatures for
enactment contains an ELA supported definition
of leasing and lease-sourcing provisions.
ELA State Government Relations Committee
Chair Valerie Guerrieri, CIT, hailed "this
unified industry effort that will deliver
simplification when administering sales
tax on leasing transactions." The Bureau of National Affairs and similar observers
following progress of the undertaking
have reported ELA analysis of provisions
in the Agreement. In addition to consistent
definitions, states will adopt uniform
bad debt provisions, common rates and
tax bases by state while relaxing administrative
burdens for registering, exemption certificates
and electronic filings. States will also
limit the scope of audit for companies
participating in one of three software-based
models. In addition to consistent definitions,
states will adopt uniform bad debt provisions,
common rates and tax bases by state while
relaxing administrative burdens for registering,
exemption certificates and electronic
filings. States will also limit the scope
of audit for companies participating in
one of three software-based models. The process began in March 2000 when the Equipment
Leasing Association joined deliberations
by state revenue officials implementing
the Streamlined Sales Tax Project, a new
nationwide software-based uniform sales
tax system. It is planned for all types
of consumer and commercial transactions
to simplify and make uniform the sales
and use tax system in 45 states and the
District of Columbia. Although the Project
is often seen as an effort to tax Internet
sales, ELA engaged in the process to safeguard
and simplify sales tax administration
on commercial leasing transactions. Negotiations between lessors and state governments
stretched over two years during which
ELA served as a coordinator of a broad
effort industry effort that included the
American Automotive Leasing Association
and National Vehicle Leasing Association.
The collaborative effort culminated with provisions
complementary to existing commercial practice.
Benefits to be derived from enactment
of the sales and use tax Agreement by
states includes the first nationwide uniform
definition of leasing supplemented by
a sourcing rule that is consistent with
rules common to income tax apportionment
and personal property tax situs. The legislation creates a threshold for the
interstate Agreement to become effective
after enactment by no less than 10 states
representing at least 20% of the population
of the 45 states and Washington, D.C.
with sales tax. The system at that point
remains voluntary for businesses to join
but will become mandatory if endorsed
by congress. Congressional approval would
enable states to collect sales tax from
Internet and catalog sellers. In fact,
a group of remote sellers has already
volunteered to begin collecting sales
and use tax in exchange for amnesty against
tax, interest and penalty for periods
before registration. Guerrieri complemented "the willingness
of state revenue officials to spend several
years listening to the concerns of equipment
lessors. The eventual uniformity amongst
the states is an outcome that will benefit
our industry." She also noted it
will be a continuous mission of ELA to
monitor Project activities and provide
input to proposals that affect our industry.
ELA continues to raise the issue of tax
imposition and credits as the Project
moves forward. Other topics to be pursued
by the Project in 2003 include audit standards
and procedures; uniform exemption certificate;
rates/jurisdiction database; central registration
system; matrix guidelines; digital property
definitions; drop shipments; and bundling.
CONTACT: Dennis Brown Equipment Leasing Association Phone Number: 703/527-8655 E-mail: dbrown@elamail.com ############# ######################################################## --------------------------------------------------------------------------------- Jim Meinen Also Now Looking for Money for IDS It is reported that Summit National of Chicago,
Illinois has made several offers to buy the rights in the United States
and/or other assets of the Great Britain Company. Here is the latest press release: ################## ######################### The Board of IDS (the "Board") announces
that with immediate effect John Hubert
has been granted a temporary leave of
absence from his position as Chairman
of IDS in order to enter into discussions
with a third party regarding his participation
in a possible offer for the issued share
capital of the Company. During John Hubert's leave of absence, Tom Glucklich
(Senior Non Executive Director) will become
acting Chairman of the Board. The Board has also granted Jim Meinen, Chief
Executive Officer, temporary leave of
absence with immediate effect to pursue
discussions with finance providers with
regard to making a possible MBO offer
for the issued share capital of the Company. During Jim Meinen's leave of absence the Board
has appointed Ron Sleiter, as Interim
Chief Executive Officer. Ron Sleiter has
over 30 years experience in the computer
software industry, most latterly as Senior
Vice President of Sales at Compuware Corporation,
a $1.7 billion turnover company. In light of these changes to the operation of
the Board, an independent board committee
(the "Independent Committee")
has been established to appraise any offers
received for the Company. The Independent
Committee comprises Tom Glucklich as Chairman,
Michael Roller (Finance Director), Harry
Tee (Non Executive Director) and Jim Granger
(Non Executive Director). The Independent Committee wishes to inform shareholders
that in addition to discussions taking
place with Jim Meinen and the position
outlined above in respect of John Hubert,
a number of exploratory discussions with
third parties who may or may not be interested
in making an offer for all or part of
IDS are being undertaken. It is important to stress that no formal offers
have been received for the Company and
that there can be no guarantee that an
offer for the Company will be forthcoming
from any of the preliminary discussions
currently taking place. Further announcements will be made as appropriate.
CONTACT: Tom Glucklich IDS Group Plc Phone Number: +44 (0) 1962 703 448 ############### #################################################### GreatAmerica Names Goddard New VP/GM of Medical
Leasing Group GreatAmerica Leasing Corporation (www.greatamerica.com)
announced the appointment of Stuart P.
Goddard as vice president and general manager of its medical leasing group.
The move will boost GreatAmerica's presence
in the medical leasing industry and further
reinforce its position as a diversified
small ticket leasing company. Goddard's entire leasing career has been focused
on the medical segment, where he developed
and implemented operational and origination
activities for institutional finance programs.
Goddard's experience in financial modeling
and business operations will support GreatAmerica's
initiatives in the diagnostic, ophthalmic,
and veterinary sectors of the small ticket
medical arena. Goddard's appointment underscores
GreatAmerica's broader strategy to diversify
its portfolio in markets that require
a superior service delivery model. Goddard recently left his post as president
and CEO at Highland Capital Corporation
in Little Falls, New Jersey. Prior to
Highland Capital, Goddard was vice president
of operations with Federal Leasing Corporation
in Roseland, NJ between 1990 and 1997.
He holds an undergraduate degree form
Villanova University in Villanova, Pennsylvania
and a masters degree from Fairleigh Dickinson
University in Madison, New Jersey. ### ################################################################ ################## #################################### Consumers Out In Full Force on Black Friday Weekend According to Latest NRF Survey Best May be Yet to Come as Retailers Still Offering
Great Deals WASHINGTON -- Retailers hoping for a sales boost
on "Black Friday" weekend were
not disappointed, according to the findings
of a new National Retail Federation (NRF)
survey. The third installment of the NRF
2002 Holiday Consumer Intentions and Actions
Survey, conducted by BIGresearch for NRF,
indicates that 75.6 percent of consumers
were out shopping on "Black Friday"
weekend. (The term "Black Friday"
was coined because, traditionally, the
day after Thanksgiving was the day that
retailers went from being in the red --
or in debt -- to being "in the black"
-- or making a profit.) In the last half of November, consumers were
hunting for bargains...and buying, with
the average person completing an additional
15.0 percent of their holiday shopping
from November 14-November 30. To date,
the average consumer has completed 38.7
percent of his or her shopping, up from
24.3 percent as reported in the previous
installment of the survey (November 16).
With only 8.2 percent of consumers reporting
they have completed all of their holiday
shopping, retailers still have plenty
of opportunities to build on their success
from "Black Friday" weekend.
"Shoppers did not waste any time this weekend
looking for great deals in the wee hours
of the morning," said NRF President
and CEO Tracy Mullin. "We attribute
this to a combination of factors including
six fewer shopping days pushing consumers
to shop early, retailers doing an excellent
job of advertising great values for consumers,
and an early Hanukah." The top gifts purchased this weekend included
books, CDs, DVDs, videos or video games
(41.0%); clothing or clothing accessories
(40.4%); toys (34.6 %) and home decor
or home-related furnishings (23.7%). Most of the preferred gift categories performed
as expected with one notable exception.
Gift cards, as reported in the second
installment of the NRF 2002 Holiday Consumer
Intentions and Actions Survey, was the
third most popular choice with 45.0 percent
of consumers planning to purchase them
as gifts. However, after "Black Friday"
weekend, only 19.0 percent of consumers
have reported purchasing gift cards, proving
that gift cards could be a very popular
last-minute gift option. Apparel was the top gift choice for women as
45.3 percent chose to buy clothing and
clothing accessories. Men went in a different
direction with their purchases, as 38.2
percent chose to purchase books, CDs,
DVDs, videos or video games. "Examining how men and women shop during
the holiday season usually yields interesting
results," said Phil Rist, Vice President
of Strategy for BIGresearch. "Taking
a look at shopping patterns, we see that
consumers are either taking advantage
of bargains to purchase items for themselves
or, perhaps, they are subconsciously buying
items for others that they would like
to receive themselves." As expected, discount department stores appear
to be faring well, with the majority of
consumers (49.0%) making this format a
shopping destination. Consumers are also
recognizing values in other formats, with
30.6 percent shopping at department stores,
33.2 percent choosing the Internet, 27.2
percent visiting specialty stores, and
16.0% shopping in catalogues. NRF continues to project an increase of 4.0
percent in holiday retail sales* this
year over last year, bringing estimated
revenues of $209.3 billion this holiday
season. The first installment of the Consumer
Intentions and Actions survey revealed
that consumers plan to spend almost $650
this year on holiday gifts, decorations,
cards, candy, and food-up from $632 last
holiday. About the Survey The third installment of the NRF 2002 Holiday
Consumer Intentions and Actions Survey
was designed to gauge consumer behavior
and shopping trends related to the winter
holiday season and "Black Friday"
weekend. The survey was conducted for
NRF by BIGresearch. The poll of 6,926
consumers was conducted from November
28 - 30. The consumer poll has a margin
of error of plus or minus 1.0 percent.
BIGresearch is a consumer market intelligence
firm. BIGresearch's syndicated Consumer
Intentions and Actions survey monitors
the pulse of over 7,000 consumers each
month to empower its clients with unique
insights for identifying opportunities
in a fragmented and changing marketplace.
The National Retail Federation (NRF) is the
world's largest retail trade association
with membership that comprises all retail
formats and channels of distribution including
department, specialty, discount, catalog,
Internet and independent stores. NRF members
represent an industry that encompasses
more than 1.4 million U.S. retail establishments,
employs more than 20 million people --
about 1 in 5 American workers -- and registered
2001 sales of $3.5 trillion. NRF's international
members operate stores in more than 50
nations. In its role as the retail industry's
umbrella group, NRF also represents 32
national and 50 state associations in
the U.S. as well as 36 international associations
representing retailers abroad. For more information about NRF, visit us at
http://www.nrf.com . * NRF defines "holiday retail sales"
as sales in November and December for
retail stores in the GAFS category: general
merchandise stores, clothing and clothing accessories stores, furniture and
home furnishings stores, electronics and appliance stores, and sporting
goods, hobby, book and music stores. ############### ########################################## Manufacturing Shrank in November By REUTERS Manufacturing contracted for a third consecutive
month in November, and with businesses
still reluctant to invest heavily in an
uncertain economy, factory sluggishness
is showing little sign of ending soon,
a report released yesterday indicated. The Institute for Supply Management said its
index of manufacturing business conditions
was at 49.2 in November, below forecasts
of 51.3 and under the 50 level that separates
expansion from contraction. Manufacturing makes up about a fifth of the
economy, but carries greater importance because so much business investment
in heavy-duty capital goods is related
to factories. Employment in manufacturing continued to decline
in November, and that index remained below
the 50 level for the 26th consecutive
month — at 43.8, down from 45.0 in October. "The manufacturing sector remains stagnant,"
said Stephen Stanley, senior market economist
at RBS Greenwich Capital Markets. "The
new-orders decline and employment declines
were not a good sign." Yesterday's main index reading was above the
October level of 48.5, but below the 49.5
of September. Norbert J. Ore, who oversees the monthly survey
for the institute, which is based in Tempe,
Ariz., said, "The trend is well established
that the overall economy is holding up,
but the manufacturing sector is feeling
the brunt of the downturn." The institute's new-orders index fell in November
to 49.9, from 50.9 in October and 50.2
in September. A barometer of future production,
the new- orders index is down sharply
from a peak of 65.3 in March. In a separate report, the Commerce Department
said yesterday that spending for new construction
rose 0.3 percent in October. Nonresidential construction rose for the first
time since April because of increases
in the building of schools and stores,
the report said. Outlays for all construction spending increased
to a seasonally adjusted annual pace of
$834.6 billion in October from a downward
revised $832.5 billion in September. At the same time, gains in housing prices slowed
over all in the third quarter as the values
of some homes, especially in the Midwest,
declined from the previous quarter, a
government agency said yesterday. Average home values in the third quarter rose
6.16 percent compared with figures in
the period a year earlier, the Office
of Federal Housing Enterprise Oversight
said. That was slower than the 7.31 percent
rise in the second quarter. Average nationwide house prices rose 0.84 percent
from the second quarter, the agency said
in a quarterly report. That was less than
the 2.39 percent gain from the first quarter
to the second. ------------------------------------------------------------------------------------------------- Two Books for Christmas Leasing News had recommended “Power Tools for Successful Leasing” by James M. Johnson, PHD Barry S. Marks Leasing Power tools Press 43W690 Willow Creek Court Elburn, Illinois 60119 Phone: 630.365.9004 Fax: 630-365.5602 E-mail: phdleasing@hotmail.com or bsm@blik.com www.leasingpress.com ===== Another book “Marketing the Equipment Lease”---Ted Parker, CLP A leasing industry best seller that trained
a generation of lessors has been newly
revised. Marketing the Equipment Lease is power-packed
with over 270 pages of "insider"
leasing information. This is the tool you need as an educational
guide, a training aid, to provide an orientation
to leasing to your staff and as an invaluable
reference source. Marketing the Equipment Lease is the dynamic
guide to leasing that is on the recommended
study list for the United Association
of Equipment Leasing sponsored Certified
Lease Professional(CLP) program. Thousands
of copies have been sold! The books has gone through a revision’/update
and is available now in both hard copy,
and CD. I personally have quite a library on leasing
books as when I started there were no
associations or conference, and I learned
early to find books on leasing.
I think this is the best marketing
book available.
http://www.cclease.com/market.html $99.50 Here is our website collection of other books
about leasing: http://two.leasingnews.org/Books.htm Ted Parker states he has been “ developing a
new website where we feature various books
and reports on leasing as well as related
products that we feel will be of interest
to the leasing industry. This will be
a continuing process as new publications,
software, etc. becomes available. “While we are still in the process of adding
additional product to the website, we
have a number of items there already.
We will have two new software programs
available by the end of the week (hopefully)
that the leasing industry is going to
love. You might want to check us out at
www.theleasinglibrary.com.
I'm very pleased with the way it
is shaping up.” Thanks. Ted Bombardier Wins Order By BLOOMBERG NEWS MONTREAL, — Bombardier, the Canadian aircraft
maker, won a $140 million order from Air
Wisconsin Airlines for 50-seat jetliners. Air Wisconsin, based in Appleton, flies short
routes for United Airlines and
AirTran Holdings. It ordered six CRJ200 jets, bringing to 64 the
number of planes it has ordered from Bombardier
since 2001. Twenty-seven of those have been delivered, and
Air Wisconsin may buy 95 more, Bombardier
said. Airlines in the United States have been using
so-called regional jets, run by their
units or partners, because of diminished
demand that was worsened by the Sept.
11 terrorist attack. The current orders will be delivered to Air
Wisconsin through May 2004, Bombardier said. ------------------------------------------------------------------------------------------------- Oakland: Stalwart Anchor City for Bay Area Economy By MARK A. STEIN New York Times Oakland, Calif., is one of three anchor cities
of the still-vibrant Bay Area economy,
and while it is smaller than San Francisco
and San Jose, it is the urban core for
a larger geographic area that stretches
from Vallejo in the north to Fremont in
the south and as far east as the San Ramon
Valley corridor. The Oakland area has its share of old-economy
stalwarts, like Clorox, Golden West Financial, the Port of Oakland and
New United Motor Manufacturing, which
is owned by General Motors and Toyota
Motor. It also has some spillover from
Silicon Valley, including PeopleSoft;
the animated filmmaker Pixar; and Lam
Research, which manufactures chip-making
machinery. AIRPORT Oakland International Airport has many of the
benefits of a metropolitan region's No.
2 airport — convenience and compactness
— and lacks a liability: crowds. As a
hub for Southwest Airlines — which accounts
for 60 percent of flights — it has daily
nonstop service to 29 American cities,
mostly in the West but also including
New York, Chicago, Dallas, Houston and
Atlanta. Most international nonstop flights
go to Mexican resort cities. The San Francisco and Oakland airports face
each other across San Francisco Bay, but
Oakland is on the sunny side, escaping
the delays that beleaguer its often fog-bound
rival. And while it lacks amenities like
airport clubs, said David Thompson, the
chief information officer at PeopleSoft
in Pleasanton, 20 miles east of Oakland,
"You can practically drive to your
gate, so it is a short walk to your flight." A survey
last summer by Travelocity, the Internet
travel site, found that most travelers
at Oakland spent less than half an hour
getting from the curb to their departure
gates. ------------------------------------------------------------------------------------------ Losing the Faith Skittish investors. Slumping sales. Growing
uncertainty. Looming war in Iraq. Can
things get any murkier? A cloudy crystal
ball, darkened by the threat of a double-dip
recession, may soon have bankers relying
on tarot cards and tea leaves. John Engen U.S.Banker Magazine As chairman and CEO of Applied Materials, James
Morgan usually knows what’s next in technology
spending. When sales of computers or cell
phones drop, the diminished appetite for
chips quickly hits sales of the semiconductor
manufacturing equipment made by his Santa
Clara, CA-based company. Similarly, when
business shows signs of picking up, chipmakers
call Morgan and ask him to step up production.
So what does Morgan’s crystal ball say about
2003? Initial indications aren’t good.
His clients are waiting to see if demand
for tech products rebounds, “but there’s
not much confidence.” With sales slumping,
he’s feeling much the same: in November,
Morgan laid off 1,750 workers. “There’s
a lot of uncertainty and a lot of corporate
budgets are decreasing. If we continue
to muddle along, things can probably slowly
get better. But if things get worse, we’re
going to have a problem.” Economists generally echo Morgan’s ambivalence.
As 2002 ends, a sluggish recovery appears
to be running out of steam. Most economists
polled by U.S. Banker say a combination
of uncertainties—ranging from a possible
war with Iraq to how far corporate reform
will progress—promises slower growth and
more joblessness in 2003. As the year progresses, most hold out hope for
an uptick, but not a surge, that will
produce modest GDP growth of between three
percent and four percent, with unemployment
reaching at least six percent. “We’ve
really just lost the faith,” says Stephen
Slifer, co-chief U.S. economist for Lehman
Bros. in New York. “Consumer confidence
is lower than it’s been in [nine] years,
and for the first time it’s beginning
to adversely impact our willingness to
spend.” As a result, “businesses aren’t
willing to hire or invest.” In reality, no one really knows for sure what
will happen. Most economists predicted
strong growth this year, only to see prospects
derailed by corporate accounting scandals
and fallout from the Bush Administration’s
war on terrorism. Today, most admit they’re
uncomfortable with some of their own baseline
assumptions for business investment and
tax reform. So while the best bet remains slow but steady
growth, most economists lay about 3-1
odds that the American economy will experience
a double-dip recession. “We’re not forecasting
a double-dip yet, but the probability
has risen,” says Doug Duncan, chief economist
for the Mortgage Bankers Association of
America. For banks, whatever occurs will likely result
in a year that’s not as good as 2002.
Record-low interest rates powered a second
year of heavy refinancing, while falling
stock prices sparked a flight to safety
that resulted in cheap deposit funding
for the industry. According to the FDIC,
banks earned a record $45.3 billion in
the first six months. The industry’s return
on assets, at 1.37 percent, was an all-time
high. In the second quarter alone, banks
gained $245 billion in assets, another
record. Already, though, signs of weakness are appearing.
The Fed’s 50 basis-point cut in November
increased the pressure on spreads, largely
because banks can’t go much lower on what
they’re paying for deposits. Credit quality
has thus far remained relatively resilient,
but even so, net charge-offs rose 33 percent
in the year ended in June. A healthy recovery would make customers more
credit-worthy and spark loan demand. But
equities would likely follow, sparking
an exodus of low-cost deposit funding.
At the same time, rates could rise, and
unprepared banks could suffer. “If I were
a big real-estate lender, I’d make sure
I was hedged significantly against rate
increases,” says Kevin Hassett, an economist
with the conservative American Enterprise
Institute. If the economy falters further, charge-offs
could balloon and loan demand soften.
Worse is the prospect of a real estate
bubble in once-super-charged markets like
San Francisco. “If people really start
to get scared about their jobs, they’re
not going to buy houses no matter what
the interest rate is,” says Stan Shipley,
senior economist for Merrill Lynch &
Co. That could spark a decline in asset
prices, “and banks could find themselves
in more trouble than they think.” Smart bankers are weighing their options, asking
questions, managing their balance sheets.
At Bank One, CEO Jamie Dimon is focused
on whether to go long or short on rates.
“He wants to know, is this the low in
interest rates, or will they drop further
and stay there for an extended period?”
offers chief economist Diane Swonk. Her
bullish counsel: “Take the money and run.
Rates could go lower, but not much. And
they could rise significantly.” Wells Fargo chief executive Richard Kovacevich,
on the other hand, is more concerned with
confidence. “He wants the basic economic
numbers. But consumer and business confidence
are the most important factors,” says
his chief economist, Sung Won Sohn. Confidence may well determine 2003’s fate. After
the 2001 recession, the economy has rebounded
with four straight quarters of modest
expansion, due almost entirely to the
consumer. While businesses have taken
a well-publicized spending and investment
holiday, Joe Lunchbucket has cashed in
on low interest rates and continued to
spend on durables and housing. By one
estimate, consumers have spent about half
of the $200 billion-plus in proceeds from
the refi boom alone. But the economy typically expands by at least
five percent in the year following a recession,
not three percent. And while worker productivity
soared 5.3 percent in the year ended in
September, unemployment has ticked up
to 5.7 percent. “We’re getting strong
productivity gains without job growth,”
Shipley says. “That kind of economy doesn’t
work.” Sobered by job and equity-portfolio losses,
and unsure about issues like war and terrorism,
consumers now look poised to pull back
on the spending reins. Private debt ratios,
at about 14 percent of household income,
is already near historic highs, and income
is slowing. Slifer notes that average
annual income grew four percent during
the first half of 2002, but could hit
just one percent in the first quarter
of 2003. According to the Conference Board, consumer
confidence in October hit its lowest level
since 1993, with more people rating the
current economic climate as “bad” than
“good.” Consumer expectations for the
near future are “clearly dampened,” says
Lynn Franco, director of the organization’s
consumer research center. “Without the
likelihood of a pickup in consumer spending,
an already weak economic recovery could
weaken further.” Some economists argue that this is but a temporary
blip. Bank One’s Swonk argues that debt
levels are higher because more people
own homes, and says consumers have better
tools to manage their finances than in
the past. She also notes that while government
payroll data paints a relatively bleak
picture, the figures for household income,
which do a better job of accounting for
entrepreneurial activity, continue to
look strong. “The consumer’s already gone
much further than anyone thought they
would go, and it’s very hard to argue
that won’t continue,” Swonk says. But the idea that consumers can continue to
go it alone isn’t widely held. Wells Fargo’s
Sohn says that if businesses continue
to delay hiring and investment, consumers
can’t sustain present spending levels.
“It’s time for the economic baton to be
passed from the consumers to businesses,”
he says. “It’s the biggest factor and
the biggest uncertainty, and if it doesn’t
materialize as we hope, then we’ll have
a double-dip recession.” There’s reason for some optimism. Corporate
profits stabilized in the third quarter,
and investments in software and other
equipment jumped 6.5 percent. Cash flows
have improved at many companies, thanks
to cost cuts and stable revenues, meaning
many firms are cash rich. Applied Materials’
war chest, for instance, has grown over
the past year, to $5 billion. “If we can
convince businesses that it’s safe to
spend some of those cash hoards, we could
have a self-sustaining recovery,” Slifer
says. This is perhaps the central conundrum for an
economy stuck in a rut. Uncertainty leaves
consumers standing like proverbial deer
in headlights. Business spending is required
to revive things, yet with less consumer
demand, corporations see little reason
to expand. The two forces feed off of,
and supplement, each other in a vicious
circle that makes things worse for everyone.
In the worst case, deflation could result. Prices
rose just 1.5 percent in the year ended
in September, according to the Labor Department,
and prices for some commodities fallen.
“Companies have no pricing power,” Duncan
says. While most economists minimize the
threat of deflation, Sohn says it can
become a “self-fulfilling prophecy” if
consumers and businesses continue to put
off purchases. All eyes are on Washington to help boost confidence.
The Fed has already shaved 525 basis points
off the Fed funds rate in recent years.
This has fueled consumer spending, but
Morgan says it has done little to encourage
his business customers to spend. “Those
are strategic decisions, based on the
market, not rates,” he says. Expect rates to tick still lower, economists
say. And now that the Republicans control
both houses of Congress, look for more
aggressive tax and fiscal policies, too.
One favorite of economists: accelerating
the timeline for Bush’s tax-cut plan.
Presently scheduled to phase in over a
decade, it has the effect of encouraging
businesses to delay some capital investments.
“Accelerating the tax cuts and making
them permanent would eliminate uncertainty
and encourage economic activity,” MBAA’s
Duncan says. Other government actions—extending unemployment
benefits, boosting of allowable deductions
for stock-market losses, investment tax
credits, revamping international corporate
taxes, and the like—are expected as well.
These are tried and true methods that have pulled
the economy through troughs before. Can
they work this time? Noted bear Stephen
Roach, chief economist for Morgan Stanley,
says that in a typical downturn, consumer
spending on cars, appliances and housing
declines, creating pent-up demand that
is unleashed when fiscal and monetary
measures gain traction. This time, spending
in those areas has remained strong. That
leaves business investment alone to revive
the dormant economy. “I’ve never seen
a capital-spending-led cyclical recovery
in the U.S. economy,” Roach wrote in a
recent commentary, “and I don’t think
this is likely to be the first such example.” Aside from fiscal measures, Congress is expected
to tackle corporate reform. A sustained
stock market rally, sparked by renewed
confidence in corporate earnings, could
embolden both consumers and business leaders
and make investment capital more accessible
again. “It’s the equity markets that are
ultimately going to bail us out of this
thing and help restore the confidence
that’s so badly needed,” Slifer says. Most agree that the biggest economic boost could
come from a quick resolution of the Iraq
matter. While war spending has the potential
to pump up the economy, even a quick victory
could boost oil prices sharply and create
long-term reconstruction costs. For now,
the uncertainty it inspires is at the
root of the private-sector slowdown, because
turmoil in U.S.-Middle East relations
has historically lead to recession. “The
economy’s going to stink until Iraq is
resolved,” Hassett says. “Once we get
that behind us, things should take off. __________________________________________________________________ FAIR HAIR CARE? KERRY CUT COST HALF OF HILLARY'S;
SENATOR CONFIRMS CRISTOPHE CLIP Drudge Report Filed By Matt Drudge Senator John Kerry confirmed late Monday that
he's been visiting Washington's famed
Cristophe Salon for haircuts, where he
has been paying $75 a visit -- half of
what Senator Hillary Clinton was charged
for a similar shampoo, cut, blow and go! This report revealed on Monday how Kerry, a
self-described "Man of The People",
has been quietly visiting Cristophe's,
getting cleaned and coifed by Isabelle
Goetz, Hillary Clinton's hairstylist. A well-placed source claimed Kerry had been
charged Isabel's going rate of $150 for
the trim; the WASHINGTONIAN also reported
in August that Ms. Goetz charges $150
a visit at Cristophe Salon. "Isabel charges Senator Clinton $150, but
charges Senator Kerry $75?" challenged
one Hill source. "I think Hillary
needs to speak out for all women everywhere
against the discrimination, if this is
true!" The District of Columbia's Human Rights Act
prohibits gender-based pricing. Hair designer Isabelle Goetz could not be reached
for comment late Monday. The Kerry $75 haircut versus Hillary's $150
one raises an important civil rights issue
waged by the National Organization for
Women, among others. Hair salons have
long employed practices that charge women
prices far greater than their male counterparts. "There is a growing consensus that basing
prices upon gender is wrong and illegal
and that increasingly it will fall, either
under existing sex-discrimination suits
or new ones as they may be passed,"
says John Banzhaf, a law professor at
The George Washington University Law School
in Washington. In 1995, the Republican governor of California
Pete Wilson signed a law that did away
with different prices based on different
genders for haircutting. The Gender Tax Repeal Act, also known as the
Equal Pricing Act, made the state the
first in the nation to specifically prohibit
gender discrimination in pricing. But what if Hillary requires more work than
her senate counterpart? While California does allow merchants to charge
higher rates to one of the sexes if they
can prove the costs are justified, the
District of Columbia has ruled out the
cost-basis defense in its law. ---------------------------------------------------------- ( What about Supercuts? $20 bucks seems high
to me for a man's haircut.
A poor family in New York or Chicago
or Santa Clara sure could use $75, let
alone $150, for food, let alone a "hair
cut." I love these candidates who
say they are for the poor, get $75 hair
cuts, and also send their kids to private
schools, but say they are for public education
and teachers. Where's Andy Rooney, when
we need him? Editor ) www.leasingnews.org --------------------------------------------------------------------------------------------------- |
