by Calculated Risk on 6/18/2008 10:45:00 AM

FedEx, and shipping in general, are considered bellwethers for the economy. And the news isn't good according to FedEx.

From the WSJ: FedEx Issues Weak Outlook, Hit by Fuel Costs, Economy

"The operating environment for fiscal 2009 is expected to be very difficult due to the weak U.S. economy and extremely high fuel prices," said Chief Financial Officer Alan B. Graf

And Chrysler is seeing sales in June "20% below expectations". From the Detriot Free Press: U.S. sales plummeting, Chrysler's chief says (hat tip John)

[I]n November ... executives were assuming Americans would buy ... only about 15.5 million [vehicles in 2008]. ... [S]o far in June ... J.D. Power and Associates and Citigroup are seeing a sales pace that is almost 20% lower -- only 12.5 million vehicles per year.

"This is the lowest sales level in 16 years and indicates a significant and continued softening of the U.S. automotive market," Nardelli wrote.
...
If J.D. Power's forecast for June -- an annualized rate of 12.5 million sales -- continues for long, Erich Merkle of IRN Inc. said, it would be "Armageddon. Doomsday."

Meanwhile from Bloomberg: Paulson & Co. Says Writedowns May Reach $1.3 Trillion

John Paulson, founder of hedge fund Paulson & Co., said global writedowns and losses from the credit crisis may reach $1.3 trillion ... ``We're only about a third of the way through the writedowns,'' Paulson, 52, told the GAIM International hedge fund conference in Monaco today.

Of course Paulson could be just talking his book, but it appears the 2nd half of 2008 will be very weak.