Friday, June 19, 2009
Interview with Dyersburg,Tn banker David Hayes
Yesterday I had the privilege of having lunch with David Hayes and discussing some questions I posed to him a few weeks ago.
1. How has the local Dyersburg market(from banking standpoint) been affected by the national banking crisis?
David said that the crisis is really a wall street crisis caused by greed. And the idea that some companies are too big to fail but the government allows others to fail is really not fair. David went on the say that Dyersburg bankers as a whole did not participate in making bad loans that foreclosures are reflecting right now. He said that his bank(Security Bank) did not take any TARP money. Security Bank is financially strong and still making loans and doing business as usual.
2. What are the banking trade association analysts saying as far as when the national economy will hit bottom and begin to recover?
David stated that the analysts believe we are at the bottom of the recession with signs of a recovery. He also stated that television is causing people to have fear and doom and gloom mentalities when actually our economy is still one of the best in the world. He and I both agree that the psychic of Americans has been negatively affected and this can be turned around with bold visionary leadership out of Washington,D.C.
3. What do you see in the near future for Dyersburg,Tn as far as credit issues, retail, and manufacturing?
Mr.Hayes restated that banks are doing business as usual in Dyersburg. They are doing so because they did not participate in the bad lending practices that have affected the national economy. I told David that all the B-paper loans that some of the real estate agents(I refuse to call them Realtors) were helping their clients get to purchase houses were all originated out of town(most in Jackson) and these loans were sold to subsidiaries of the banks now getting TARP money.
David said that yes many of the local manufactures have been affected by the recession. Some examples include one or two local manufacturers who were selling to GM. That bankrupcy rippled all the way down to the suppliers. Other manufacturers here have had to lay off due to slow sales. Ermco has been slow due to new home sales being slow. They make the transformers furnishing electricity to the homes. Briggs and Stratton has been slow due to low sales volume for new lawn mowers. However, other manufacturers here are doing great and some have been hiring lately.
David mentioned NSK steering systems preparing to add 50 jobs here at their new facility.
We both discussed the need to continue to market to high tech industries wanting to locate in cities like Dyersburg that has a low crime rate, great schools, a community college that is teaching high tech skills, an educated available work force,and a close knit community. David says we are competiting for these industries against other cities across the country.
All of the low tech non skilled jobs have moved overseas.
5. What does Dyersburg have to offer individuals or companies considering a move to Dyersburg?
David pretty much answered this question up above but he also stated that we have a great community with lots to offer. There is a lot of "new blood" that has already moved to Dyersburg that have good values and fresh ideas that we must cultivate. We have a real opportunity for old members and new members of our community to work together and if that happens then their are infinite possibilities ahead for our city.
6. Do you share my belief that the worst is over for our local and national economy?
He does believe we are entering the uphill phase of a recovery but jobs will be key to a healthy recovery. Our kids need to excel in learning and our adults need to have high tech skills in order for new industry to come to Dyersburg. The days of the low pay no tech factories are over. If you want a great paying job you have to prepare yourself with technical skills the high tech companies are looking for.
7. What in your opinion should happen to the toxic assets being discussed in Washington and just what are those toxic assets?
Those toxic assets are loan packages that were put together and sold to banks and investors. Many of these are considered toxic because the risk of default is high. Much of this is the b-paper loans that were made and foreclosures that are happening now. David said that the companies that made them or bought them should have to deal with them themselves and not ask the government to "bail them out of the mess they created".
8. Do you believe the United States helped create this world wide recession?
Yes, I believe the greed on Wall Street did contribute to the world recession. The financial system in our country is built on trust but when greed and fraud is brought into the equation then the system stumbles. David went on the say that the government will probable put a lot more regulations in place which could actually slow down "good growth". He believes in regulation but perhaps we need to enforce the regulations already in place. Fannie Mae and Freddie Mac were pretty much unregulated. This coupled with the thought that every American deserves to own a home even if they cannot afford it. Many bought that could not afford it and now many are in foreclosure.
Lets get back to basics here in our country and everyone be responsible for their own actions. Our country has drifted away from personal responsibility.
In closing, David and I are "excited" about our community of Dyersburg and believe there are great things to come!
1. How has the local Dyersburg market(from banking standpoint) been affected by the national banking crisis?
David said that the crisis is really a wall street crisis caused by greed. And the idea that some companies are too big to fail but the government allows others to fail is really not fair. David went on the say that Dyersburg bankers as a whole did not participate in making bad loans that foreclosures are reflecting right now. He said that his bank(Security Bank) did not take any TARP money. Security Bank is financially strong and still making loans and doing business as usual.
2. What are the banking trade association analysts saying as far as when the national economy will hit bottom and begin to recover?
David stated that the analysts believe we are at the bottom of the recession with signs of a recovery. He also stated that television is causing people to have fear and doom and gloom mentalities when actually our economy is still one of the best in the world. He and I both agree that the psychic of Americans has been negatively affected and this can be turned around with bold visionary leadership out of Washington,D.C.
3. What do you see in the near future for Dyersburg,Tn as far as credit issues, retail, and manufacturing?
Mr.Hayes restated that banks are doing business as usual in Dyersburg. They are doing so because they did not participate in the bad lending practices that have affected the national economy. I told David that all the B-paper loans that some of the real estate agents(I refuse to call them Realtors) were helping their clients get to purchase houses were all originated out of town(most in Jackson) and these loans were sold to subsidiaries of the banks now getting TARP money.
David said that yes many of the local manufactures have been affected by the recession. Some examples include one or two local manufacturers who were selling to GM. That bankrupcy rippled all the way down to the suppliers. Other manufacturers here have had to lay off due to slow sales. Ermco has been slow due to new home sales being slow. They make the transformers furnishing electricity to the homes. Briggs and Stratton has been slow due to low sales volume for new lawn mowers. However, other manufacturers here are doing great and some have been hiring lately.
David mentioned NSK steering systems preparing to add 50 jobs here at their new facility.
We both discussed the need to continue to market to high tech industries wanting to locate in cities like Dyersburg that has a low crime rate, great schools, a community college that is teaching high tech skills, an educated available work force,and a close knit community. David says we are competiting for these industries against other cities across the country.
All of the low tech non skilled jobs have moved overseas.
5. What does Dyersburg have to offer individuals or companies considering a move to Dyersburg?
David pretty much answered this question up above but he also stated that we have a great community with lots to offer. There is a lot of "new blood" that has already moved to Dyersburg that have good values and fresh ideas that we must cultivate. We have a real opportunity for old members and new members of our community to work together and if that happens then their are infinite possibilities ahead for our city.
6. Do you share my belief that the worst is over for our local and national economy?
He does believe we are entering the uphill phase of a recovery but jobs will be key to a healthy recovery. Our kids need to excel in learning and our adults need to have high tech skills in order for new industry to come to Dyersburg. The days of the low pay no tech factories are over. If you want a great paying job you have to prepare yourself with technical skills the high tech companies are looking for.
7. What in your opinion should happen to the toxic assets being discussed in Washington and just what are those toxic assets?
Those toxic assets are loan packages that were put together and sold to banks and investors. Many of these are considered toxic because the risk of default is high. Much of this is the b-paper loans that were made and foreclosures that are happening now. David said that the companies that made them or bought them should have to deal with them themselves and not ask the government to "bail them out of the mess they created".
8. Do you believe the United States helped create this world wide recession?
Yes, I believe the greed on Wall Street did contribute to the world recession. The financial system in our country is built on trust but when greed and fraud is brought into the equation then the system stumbles. David went on the say that the government will probable put a lot more regulations in place which could actually slow down "good growth". He believes in regulation but perhaps we need to enforce the regulations already in place. Fannie Mae and Freddie Mac were pretty much unregulated. This coupled with the thought that every American deserves to own a home even if they cannot afford it. Many bought that could not afford it and now many are in foreclosure.
Lets get back to basics here in our country and everyone be responsible for their own actions. Our country has drifted away from personal responsibility.
In closing, David and I are "excited" about our community of Dyersburg and believe there are great things to come!
Labels: interview with David Hayes
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