Fred Smith, the long-times CEO of FedEx (FDX) thinks that the global recession can’t be avoided. The American economy is not growing, and its multinational companies won’t find enough business outside the US to offset problems at home.
And, FedEX, which gets killed by high oil prices, will continue to struggle. Smith looks through the lens of his own company to say the big fuel price gains will bring ecomomic growth down no matter what else happens to keep global GDP up.
"Mr Smith said his long-held belief that a rise in oil prices usually led to global economic downturns was likely to be proved right this time too." according to the FT. He does not like the fact that this oil shortage is driven by rising demand more than falling supply.
Smith may be biased. Oil prices are killing his company. But, that will not keep him from being right.
Douglas A. McIntyre
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