Leasing News

Headlines---

Pictures from the Past----1981---Leon Frick

Paid " Help Wanted" ads work--Fred St Laurent

ELA Down 13 members, 1 ½% from the Previous Year

Wanted: Nat.Sales Manager: Equipment Leasing Apple Computer

Machine Tool Purchases Drop 9.7 Percent

End Seen to Furious Issuance Growth—ABSnet

Productivity up as wage growth slows

Alexa Website Report---Curiosity? Wayne Hunt, ELA

Cartoon----Kit's World

Top Stories from 2002---

Pinnfund/PinnLeasing

Special---Ron Caruso, Full Professor on what is going on.

------------------------------------------------------------------------------------

Pictures from the Past----1981---Leon Frick

Leon Frick is vice president/general manager of World Wide Lease, Inc., Lynwood, Washington.

A native of Audubon New Jersey, Leon has a 23-year career with the U.S. Air Force prior to joining the equipment leasing industry. He retired in 1974, with the rank of Lieutenant Colonel.

During his Air Force years, Leon earned a B.S. in Nuclear Engineering at Kansas State University and received his M.S. in Business Administration at the University of Rochester, New York.

In June, 1973, Leon founded Trans-World Leasing Corporation of New Mexico in Albuquerque. He served as president of the firm until its merge with World Wide Lease Inc. in May, 1979.

---------------------------------------------------------------------------------------------------

--Paid “ Help Wanted” ads work ---Fred St Laurent

The ad on Leasing News was very helpful to me and I highly recommend it to

everyone. We just renewed the ad, but shifted to also needing small ticket

reps that are doing municipal leasing.

Mr. Fred St Laurent

Managing Director - Recruiting

Bradbury and Williamson, Inc

Financial Services Division

4550 River Green Parkway - Suite 120

Duluth, Georgia 30096

770-813-3320

fstlaurent@cfl.rr.com

www.bwresults.com

www.fredstlaurent.com

Credit: Equipment finance & leasing company in NYC looking for processor with credit exp. Will handle credit, documentation and funding of loans/ leases.email:sgramaglia@easternfunding.com

Sales: Small ticket leasing reps, General equip. & medical, Municipal Vendor leads are provided.

Fred St Laurent freds@bwresults.com

Sales: Small to Mid-Size ticket leasing Reps. CA & others. Many Vendor leads avail. Gen. Equip.and Auto Shop Equip. Strong Commish. & Support. Adam at APetty@lvcm.com

Sales: National: 7 offices Medical & IT/ plus. Seeking professionals w/solid book of business & high ethics. Exceptional support & commissions. Expenses paid. 616-459-6800 Email: gsaulter@chaseindustries.com "UAEL"

----------------------------------------------------------------------------------------

ELA Down 13 members, 1 ½% from the Previous Year

The Equipment Leasing Association ended the year with the following membership numbers -

2002

Regular Members 862

New Members 120

Resigned Members 118

“The 2003 Membership campaign is still underway, although dues were "due" on December 31. For those who do not renew, member benefits will cease on January 31. These benefits include access to ELA Online, a major source of critical industry information, and access to events like the Equipment Management Conference and Exhibition, Funding Exhibition and Annual Convention, events that provide members with important business development opportunities. ELA members may pay by using ELA Online. Go to http://www.elaonline.com and simply click "Pay Your 2003 Dues invoice!" It's that easy!

“During the new year, ELA will be focusing on:

“1) Advocacy - ELA acting as the industry's collective voice and advocate in legislation, regulation and standards that shape what equipment leasing and finance companies can do.

“2) Business Development - those activities such as networking, industry news and other activities that foster business. This includes ELA Meetings. ELA recently released its 2003 Calendar of Events and Training, which is available on ELA Online at http://www.elaonline.com/events/Year.htm#2003

“3) Knowledge Management - ELA will gather, store, analyze and share knowledge and out the industry and its practices for use by members to make the best decisions possible.

“4) Competency - The ELA should assist the development of members' employee competency.”

Best wishes,

Amy Miller Holmes

aholmes@ELAMAIL.COM

Equipment Leasing Association
Equipment Leasing Association of America
4301 N. Fairfax Drive,
Suite 550,
Arlington, VA 22203-1627
PH: 703/527-8655
FX: 703/527-2649
alt FX: 703/522-7099
Fax on Demand: 503/402-1338
E-mail: E-mail Addresses

The largest, and perhaps the most politically influential leasing association, backed by all segments of the leasing industry, is the Equipment Leasing Association. Their dues reflect a professional, well-run and managed association with the most meetings, the best equipment leasing website on line, legislative advocates in Washington, D.C., also available to many states, top rated conferences, and is very sophisticated. It also has the largest number of members, 873 as of December 31, 2001; 862 as of December 31,2002. There is something for every segment of the leasing industry and many benefits to growing leasing companies and leasing company executives.

It should be noted that the ELA conference attendance has always been
"outstanding", their legislative involvement is not paralleled in our industry,
and their web site, with its full and always current information, is the best leasing
industry web site, no competition. In an internet study we are conducting on
finding leasing industry jobs on the internet, we have several who told us they
found jobs using the ELA web site. Several others had recruiters call them,
but at ELA, they were successful on line. If you have not visited it, you should:
www.elaonline.org

There is a new dues structure with a $2200 minimum and a minimal fee

for members who were active with a company that has merged, been

purchased, or is no longer in business.

http://www.leasingnews.org/DuesComparison.htm

Here is a story about the new dues structure:

http://www.leasingnews.org/archives/December%202002/12-24-02.html#ela

----------------------------------------------------------------------------------------

Wanted: Nat.Sales Manager: Equipment Leasing Apple Computer

This job was just posted ! Could be a good lead for someone...

Responsible for all lease sales volume (Education and Business/Retail) for

the US and Canada. Duties include sales coverage management (currently 6

inside and outside leasing managers), sales negotiations, field training,

coordination with lease marketing managers, integration with sales efforts

in all channels - Apple Store, Retail, Education and Channel. Should have

the ability to communicate at highest management levels, drive account

reviews and proactive planning. Position will report to Director, Worldwide

Financial Services.

7-10 Yrs Direct Field Leasing Experience, preferably High Technology

***Significant Experience, Municipal - State/Local Financing

3-5 Yrs Sales Management Experience

Good communication skills - written and verbal

Good customer presence Ability to travel frequently

Will require some direct account responsibilities

----------------------------------------------------------------------------

Additional Information

Position Type: Full Time, Employee, First Shift (Day)

Contact Information

jboehme@apple.com

Apple Computer Inc.

Ph: 408-996-1010

Fax: 408-974-5691

--------------------------------------------------------------------------------------------

Machine Tool Purchases Drop 9.7 Percent

The Associated Press

NEW YORK –– U.S. purchases of machine tools fell 9.7 percent in November from the previous month, and dropped 4.3 percent from the same time a year ago, two industry groups reported.

Companies spent an estimated $145.52 million for machine tools in November, the Association for Manufacturing Technology and the American Machine Tool Distributors' Association said in a report released Monday.

The decrease was most pronounced in the Midwestern and Northeast regions of the country, while the Southern region saw increases.

November sales were down from $152.04 million in November 2001.

Analysts consider the demand for machine tools as a reliable indicator of the strength of the manufacturing industry and the overall productivity, since the reports provide information about the industries' investment in capital metalworking equipment.

With a year-to-date total of $1.857 billion, machine tool sales are down 25.8 percent when compared with the same period in 2001.

"The recovery of America's manufacturing base is anemic. It needs the additional stimulus that would be provided if Congress expands the President's very good Economic Growth and Jobs package to allow American manufacturers, regardless of size, to expense more of the cost of manufacturing technology investments," said Albert W. Moore, AMT president.

Compared with figures from November 2001, machine tool sales dropped 22.5 percent in the Northeast, 2.5 percent in the Central region, and 22.1 percent in the Midwest. In the West, consumption was down 8.8 percent from a year earlier while the Southern region was up 67.4 percent.

--------------------------------------------------------------------------------

End Seen to Furious Issuance Growth

ABSnet

After more than dozen years of uninterrupted growth, the U.S. asset-backed market finally appears to be losing its momentum.

Eleven market players surveyed by Asset Backed Alert are predicting, on average, that U.S. issuers will complete $401 billion of U.S. securitizations in 2003 - a 2.4% decrease from a record $411 billion in 2002.

The field is about evenly split between those who think the market will shrink this year and those who are calling for continued expansion, with predictions ranging from a low of $344 million by MBNA America's Vernon Wright to a high of $460 billion by S&P's Patrice Jordan. However, the consensus is that the market can't sustain the explosive growth that occurred in 2002, when new-issue volume jumped 24%.

The lackluster outlook is due, in part, to expectations that interest rates will start rising at some point this year - removing the incentive for homeowners

to take out home-equity loans that can be packaged into new asset-backed securities. Indeed, the market for bonds backed by second-lien mortgages grew tremendously in 2002 as the Federal Reserve moved to stimulate the economy by cutting interest rates. Now even the more-bullish forecasters expect little growth in the volume of home-equity bonds this year.

What's more, housing prices probably won't skyrocket again like they did in 2002, giving homeowners less equity against which to borrow, said Theresa O'Neill, Merrill Lynch's chief asset-backed strategist. She expects $375 billion of new deals this year.

Most forecasts call for the reduced volume of home-equity securities to be partially offset by growth in the auto-loan and credit-card sectors.

What's harder to gauge is the impact that continued volatility in the corporate-bond market will have on this year's securitization activity. The conventional wisdom is that when investors shy away from unsecured bonds - especially those with junk ratings - would-be issuers are forced to seek less-costly funding options, including securitization. "Weakness in the corporate market will make ABS more attractive from an issuer's perspective," said Doug Murray, who heads the ABS group at Fitch. Murray expects $430 billion of new deals in 2003.

But many securitization pros insist that issuers aren't likely to undertake massive restructurings of their funding strategies based exclusively on market conditions. If that is true, any improvement or deterioration in the corporate-bond market would have only a marginal effect on asset-backed issuance. That argument is especially strong for large companies that need diversified sources of liquidity. "Ford will be there one way or the other," said Christopher Flanagan, who oversees the ABS-research desk at J.P. Morgan Chase.

He's calling for issuance to decline this year, to $370 billion.

Another wildcard is the impact that proposed changes in accounting rules would have on the market. If the Financial Accounting Standards Board decides to take away the off-balance-sheet treatment that it currently allows for assets securitized through commercial-paper conduits, it could be a prelude to a growing new-issue pipeline, said Fitch's Murray.

On the other hand, a U.S. war with Iraq could cause consumer confidence to slide, which would lead to reduced borrowing and, hence, fewer securitizations, said Merrill's O'Neill.

Asset-Backed Alert asked the forecasters to exclude collateralized debt obligations and deals backed by jumbo home loans from their predictions.

---------------------------------------------------------------------------------------------------

Productivity up as wage growth slows

By Barbara Hagenbaugh, USA TODAY

WASHINGTON — Americans who are hanging onto their jobs are working harder, but they're not getting much more cash for their efforts.

Productivity jumped 5% per quarter from the third quarter of 2001 through the third of 2002.

AP file

Average hourly pay for production and non-supervisory workers rose 3% in 2002, the weakest gain in seven years, the Labor Department said Friday. That happened while productivity — worker output per hour — skyrocketed as those employees took up the slack after co-workers were laid off. The department does not track pay for higher-level employees.

Although some economists say the slow wage growth does not bode well for consumer spending, the biggest piece of U.S. economic activity, others note that at $14.98, average hourly pay in December still was the highest on record and that the yearly gain outpaced inflation.

"That is good news for the economy going forward," says James Smith, chief economist at the Society of Industrial and Office Realtors.

Behind the small raises in the report:

Workers now just want to hold onto their jobs and are unlikely to seek more pay.

Health insurance costs are soaring and employers are balancing some of the higher premiums by reducing raises.

There are some signs that bonuses and commissions are becoming a bigger part of the pay package. Those would not be included in the government data.

Richard Chaifetz, CEO of Chicago-based employee-assistance provider ComPsych, says the increased workload and small raises have led to "more stress and discontent." Calls to the firm's help lines are up 10% this month compared with the same period a year ago.

The wage news came as the government said the unemployment rate was steady at 6% in December. But on a seasonally adjusted basis, 101,000 non-farm jobs were cut — the biggest drop since February — as retailers hired fewer seasonal workers than in previous years.

A total of 181,000 jobs were lost in 2002 after a 1.4 million drop in 2001. It was the first back-to-back annual job decline since 1957-1958. Productivity jumped an annualized average 5% per quarter from the third quarter of 2001 through the third quarter of 2002, the period of most recent data. That's the fastest gain in nearly two decades.

Despite the gloom, most economists see a quick turnaround in the jobs numbers in January.

Thomas Johnston, president of Worldbridge Partners, a placement and temporary staffing firm in Cleveland, says he has seen a big increase in activity in the last six weeks. Until recently, firms that were hiring have been seeking only one or two new workers at a time. Now he's working with 40 companies looking for a combined 3,000 to 4,500. "We're actually seeing things getting much more positive," he says.

ComPsych's Chaifetz advises CEOs to do all they can to pat workers on the back even if they can't afford big raises. "The companies that don't take care of the best and the brightest right now will probably lose them when the economy improves," he says.

-------------------------------------------------------------------------------------

Alexa Website Report---Curiosity? Wayne Hunt, ELA

Hi Kit,

Thanks for the interesting info on leasing web sites. It might be more

informative with a brief explanation about how the numbers are arrived at.

http://pages.alexa.com/prod_serv/traffic_learn_more.html?p=DestRank_W_t_40_L1

For instance, this only counts usage from people who download, install and

use the Alexa toolbar application ---available only for the Microsoft Internet

Explorer web browser (sic).

The Alexa ranking is a nice curiosity, it really should be taken within the context of how it's compiled. Like you, we also use WebTrends to get visits and other stats from web server logs, as it is much more meaningful and can be used in site design & marketing decisions.

Trying to get such "real numbers" for a comparative ranking would be an

impossible feat.

Anyway, I just thought a brief bit about how the data is compiled would make

the rankings more relevant. Since this feature pops up in your newsletter

now & again, maybe you can include a blurb with the next one.

Thanks again,

Wayne Hunt

Director, Online Services

Equipment Leasing Association

4301 North Fairfax Drive, Suite 550

Arlington, VA 22203

703.516.8371; Fax: 703.527.2649

whunt@elamail.com; http://www.elaonline.com/

http://www.leasingnews.org/archives/Januray%202003/1_10_03.htm#alexa

(I put this information in originally and somehow I left it out.

I also made mention people can go direct and learn more about

each account. You are correct, it should have been noted

below the report printed.

“These comparison are compiled by Leasing News using Alexa and should be viewed as a "sampling," rather than an actual count from the website itself.”

You information about which browsers support Explorer, comes from Alexa

itself. I find it is not accurate. I use Alexa on Opera, which I use more than Microsoft,as it is very slow ( according to Cnet, 85% on the internet use the Microsoft browser. The search engine I use 100% of the time is Copernic Pro. It also allows Alexa. Alexa also has partnered with Google, as they state on their website. I also have Alexa tied into my Yahoo, when I use it for stocks, etc. So it may not be dependent on the browser that you are choosing.

Apple has a new browser out, Safari (Jobs made the announcement at MacWorld in San Francisco last week). Many Apple users have been using it in beta and say it is much, much faster than Explorer. I am told it allows Alexa. I don't use Netscape, so can't testify to that.

More importantly, I think the report we compiled is fairly accurate.

eLEssors, for instance, when they went to a paid subscription, including a

non-member log in during East Coast business hours only, went from

the top ten to the bottom. You could see the movement over the last

several months. As we get closer to the annual convention, I suspect

it will gain rise to the top with new changes by John Semon.

Leasingtoday started at the bottom and has worked its way to the top ten.

It is a well-organized newspaper, and perhaps the most important feature

is the stock ticker on public equipment leasing and finance companies.

The association websites generally attract members only.

UAEL and NAELB both have “on line” bulletin or listserve type programs

and their “hits” have moved up the ladder since the installation. You need

to log on to use their program. EAEL is about to start such a program, and I bet their website will move up the ladder if it is the “bulletin board type.” The ELA version is a true “listserve,” yet it is in the top five. #1 ELA is the largest association, and members

can have multiple log ins ( not just one), #2 There is good reason to visit the ELA website

often, if not daily.

Executive Caliber has been rising up the list; however, with the program of paid

membership to certain sections, it may level off. Time will tell. Jeff puts a lot

of work into it, and the leasing crossword is very popular. Jeff has an e-mail list of 14,000 readers, the most in the industry, and is a very active speaker around the world.

I see I don’t have the equipment finance journal listed, and that is an

oversight we will correct in the next monthly report.

Hopefully we will do a quarterly or semi-annual report to note changes.

Just like a financial statement, the quarterly or semi-annual comparison

can often tell you more than just a one month. In fact, leaselawyer had

some very good timely articles and they were much higher in the chart at one time.

I will be concerned if Leasing News drops below the top ten. The best indicator I

have is receiving ten new readers a day , on the average, for our eMail version. When we have a real gutsy story, the real low down, we can get from 30 to 50 who want to join the mailing list. The continued referral and new sign ups is the best indication of acceptance. The best news and information comes from the readers themselves.

Thank you for reminding me to put the Alexa explanation information down

again. I will try not to overlook it. Editor )

http://www.leasingnews.org/archives/Januray%202003/1_10_03.htm#alexa

-------------------------------------------------------------------------------------

Cartoon----Kit’s World

---------------------------------------------------------------------------------------

Top Stories from 2002---

Pinnfund/PinnLeasing

Leasing News has been following the PinnFund/PinnLease story, as evidenced

by our The List.

PinnFund/Leasing 12/2002--A former employee of defunct PinnFund USA, a Carlsbad mortgage lender that imploded in March 2001 when regulators uncovered a $300-million pyramid scheme, pleaded guilty to lying to a federal grand jury. U.S. Attorney Carol Lam said Kimberly Hulihee admitted that she provided false testimony on Nov. 14 to a federal grand jury investigating the removal of files and other materials from a PinnFund subsidiary - PinnLease USA Inc. Hulihee, 38, was the former office manager of PinnLease, and later a company linked to former PinnLease President Tommy Larsen called Aloha Pacific Leasing. Hulihee is the second person to plead guilty to criminal charges in the PinnFund fraud. Former PinnFund chief executive Michael Fanghella also has admitted to myriad federal charges. He is cooperating with authorities and remains behind bars in the Metropolitan Correctional Center in San Diego awaiting sentencing. Larsen faces a pending civil suit related to the PinnFund fraud but no criminal charges, according to court documents. (8/2002) Federal authorities plan to auction expensive wine, jewelry and coins seized from the Ramona house of John D. Garitta, the former PinnFund USA chief financial officer who pleaded guilty last week to securities fraud charges. Merchandise to be sold at the auction includes more than 400 bottles of wine worth an estimated $163,000, $480,000 in jewelry and gems and $19,000 in collectible coins. The auction will be held in Rancho Dominguez in the Los Angeles area. (7/2002) investors in Carlsbad's defunct PinnFund USA sue the PricewaterhouseCoopers Accounting Firm for failing to detect fraud at the Company. (4/2002) the Receiver in the case filed a lawsuit against Tommy Larsen, related companies and a law firm, in bankruptcy court. It's a preference that may climb to $6.7 million. Larsen denies it all, and says, "prove it!" (12/2001 ) a top Executive Officer to turn over $47 deal/judge makes okay as it favors return of investor money. http://www.leasingnews.org/archives/ December%202001/12-07-01.htm. (11/2001) Girlfriend to return millions. http://www.leasingnews.org/ archives/November%202001/11-01-01.htm. (8/2001) Fanghella pleads not guilty to all charges, remains in jail. (8/2001) A federal grand jury indicted PinnFund USA founder Michael J.Fanghella 20-count indictment; 19 counts in the indictment carry a maximum penalty of 10 years in prison and a $250,000 fine. One count -- filing false financial information with the U.S. Dept of housing and Urban Development -- carries a maximum penalty of 30 years in prison and a $1 million fine. (8/2001) In San Diego Feds file charges for filing false financial statements plus criminal charges for bilking at least 166 investors out of $330 million after Fanghella turns self in. (7/2001 ) Barbados Court Freezes PinnFund Exec's Assets (6/2001) Leasing News considers it a “not guilty” judgment against Tommy Larsen, but Larsen’s lawyer basically agreed to comply with the temporary restraining order of March 23 and agreed that Mr. Larsen would give an accounting of any possible gains he received that rightfully belong to PinnFund. Since he gave in to everything the receiver wanted, he was not held in contempt. The records shows that being acquitted or not guilty was not what happened. The judge found he wasn't in contempt because, going forward, he agreed to cooperate fully. (6/ 2001) Judge Hands Down $109 M Default Judgment in PinnFund Scandal. Bounty Hunters Get the Nod to Go Get 'Em (4/2001) Judge continues freeze of assets. Founder of PinnFund skips bail, judge issues arrest warrant ( 3/2001) PinnFund out of money, closes all offices, including leasing. Newspaper stories say “Millions of dollars are gone.” (3/2001) PinnLease USA to Fold 47 Nationwide Offices-- $100 Million Fraud, reads like a tabloid story, perhaps largest fraud in West Coast history.

Here is a more complete story up to the arrest of Michael J. Fanghella, and it

does read like a tabloid story.

http://www.leasingnews.org/docs/Pinn_1.htm

--------------------------------------------------------------------------------------

Ron Caruso---Full Professor on what is going on.

While there has been more industry news brought to the internet than ever

before, one of the oldest and best newsletters comes from the Equipment

Finance Journal. Ron Caruso is the senior dean of the industry, perhaps

our full professor on what is going on. If you don’t subscribe,

here is his latest:

January 10, 2002

((((((( WELCOME TO PULSE ONLINE! )))))))

Brought to you by The Equipment Financing Journal (The EFJ)

In this bi-weekly e-newsletter, we will be providing you with

important equipment financing news with an interpretation of

what’s happening in this financial sector and its impact. As

always, your comments and suggestions are welcome.

=============EFJ Pulse Online Sponsor====================

Nassau Asset Management

Recovery and Remarketing Specialists

1(800)462-7728 or 1(800)4-NASSAU

GO HERE>>>>>> www.nasset.com WE GET RESULTS!!!!!!!!!

Servicing The Leasing Industry for more than 25 years!!!!!!

*Covering all 50 states and Canada

*Fastest turn around

*24 hour reporting via Web

*Highest resale prices

Call Nassau now for a complete assessment of your needs!!!

==========================================================

Reading the Tea Leafs

By Ron Caruso

We should be used to it by now. The past year was characterized by it- every day, every week, etc. – good news and bad news. Could things be changing? Well, from this perspective, I think yes and no (how politically correct!) Let me explain what I mean.

Although last year was a mixed bag of good news and bad news, the bad seemed to always outnumber the good, by a wide margin. However, the beginning of the new year is showing a change in the mix- the good may outnumber the bad, but then there’s another element – lets call it heightened uncertainty. Let me cite a few examples of each:

Good news: 1) The first three days of ’03 have given the Dow its second best start ever, with a gain of 5.2%. This was only beaten once, in 1930, when it climbed 17% over the same time period.

2) The Institute of Supply Management (ISM) index of business activity was 54.7 in December, a significant increase from the 49.2 it posted in November. A reading of this index above 50 indicates the manufacturing sector is growing.

Bad news: 1) This surge in manufacturing activity occurred while some companies are still laying off workers. In fact, more than 1.8 MM jobs in manufacturing have been lost in the past two years. Currently, less that 15% of the nation’s workers are engaged in factories. The paradox seems to be we are able to increase output per worker due to high-tech machinery and software and thus reduce the number of workers needed.

2) Holiday Sales Disappoint – even steep discounts could not attract consumers, with retail sales projected to be in a range from down 0.2% to up 0.2%. Circuit City as an example said sales decreased 6% in December from the same period a year ago. Has the consumer run out of steam?

Heightened uncertainty:

1) Iraq: is war a foregone conclusion? As the U.S. moves military resources to this arena, the stakes increase – who will blink first?

2) North Korea – its government expelled observers and asserted its intention to resume the development of nuclear fuel and or nuclear fission materials.

3) Venezuela: This oil rich nation, a vital source of energy in our hemisphere is going through a political gridlock, seeking the ouster of the present government by street demonstrations and a virtual shutdown of its oil industry.

Any one of these hot spots has the potential to explode without warning, causing untold damage. In the case of Iraq, outright war is more than a possibility, the ramifications of which could include finding out if Saddam Hussein really possesses the weapons we thing he does, - when he chooses to use them.

Capital Spending: Poised for a Rebound?

According to government measures, across the economy profits are up 12% from a year ago. More importantly, free cash flow, which reflects capital outlays and excludes non-cash charges, is even stronger. It has doubled to 6% of sales since early 2001, well above its long term average of 4.4%, according to Vadim Zlotnikov, a strategist at Sanford C. Bernstein & Co. Perhaps Fed. Chairman Greenspan summed up the current situation most aptly when he stated: “ we do not have a debilitatingly large overhang of capital stock from overbuilding of plant and equipment. What we do have is a very large degree of uncertainty,” much of which is focused on “geopolitical risks”.

The Bottom Line: Although certain sectors such as airline, telecommunications and industrial real estate may take years to recover, they are the exception - the good news is becoming more prevalent. The next major anticipated info surge - fourth quarter profits. If the results are viewed positively, the pent up demand for new equipment may be unleashed. Additionally, if the President and Congress can agree to agree on an economic stimulus package in the near-term, we may have a real sustained recovery. But don’t forget the “geo-political” issues. Stay tuned.

============ Other Equipment Leasing News ==================

World’s Airlines lost $13 Billion in ‘02

According to the International Air Transport Association (IATA) the world’s airlines, lost a combined $13 billion in ’02. Although this is 4.5 billion less than they lost in ’01, cumulatively the airline industry has lost more money in the past two years than it made in profit over the previous 45 years. IATA also projected U.S. airlines are expected to pos a combined 2002 loss of $7 billion to 7.5 billion.

Health Care Spending Continues to Rise

According to federal statistics released earlier this week, spending on health care jumped 8.7% in 2001, to $1.4 trillion, the largest jump in the U.S. in a decade. Health care spending surged to 14.1% of the gross domestic product.

AT&T

AT&T Corp. announced it will eliminate 3,500 jobs, more than half managerial in the first half of 2003. It also reported it will reduce the value of its Latin American and high speed internet ventures. The Cumulative impact of these actions will result in a write-off of $1.54 billion.

Citigroup Invests in China

Citigroup Inc. will buy 5% of China’s second largest publicly traded lender, Shanghai Pudong Development Bank Co. and will have and exclusive accord with the bank to expand in China, Pudong disclosed.

For more information on these and other breaking news stories,

visit the EFJ's web site:

http://www.efj.com

---------------------------------------------------------------------------------------------------