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Cramer Transcript: FedEx Package Was Half Full

NEW YORK ( TheStreet) -- Debra Borchardt interviews Jim Cramer regarding Fed-Ex and the economy at large. A full transcript appears below:

The Street:
Jim, let's talk about Federal Express. It's really affecting the market today. They cut their outlook. Now granted, a few weeks ago they said that they were going to be cutting their outlook so they already gave us a heads up on that. Is this the economy like they said or are they just laying blame on the economy and is it more FedEx related?

Jim Cramer:
I think it's the economy. I think that one of the reasons why these policy-makers are all hands on deck, whether it be Bernanke or Draghi or China...I'd still like to hear from them more, is because of world-wide commerce slowing. I think the Baltic Freight Index doesn't do anything and world-wide commerce is bad as judged by FedEx. These are kind of two sides of the same coin. There's less shipping going on and rails are not that bad but the rails transport - there are certain things that are good - that are more housing and auto-related. But FedEx is not housing and auto-related and so therefore they're part of the economy that's not doing that well. And...

The Street:
But they said the customers are shifting away from the premium service into the cheaper service and it seems like they've kind of just caught themselves at being too high priced on their premium (as far as operating costs go) so maybe once they right-size those costs...

Jim Cramer:
And that could be. I don't know how much of their business is Amazon. I know that Amazon has put up so many warehouses that you don't need to order the expensive FedEx. It just comes very quickly. I also know that FedEx's infrastructure is built for ever-rising economy so it's possible that they overcharged for premiere and that they have to cut price. You know, these companies, FedEx and United Parcel, as visionary and terrific as they are, truly did not see a global slowdown or they expected a very quick pick up and they're like people who said, "Listen, when you come out of a recession you tend to get a nice bounce." So both companies were too optimistic and I think they're paying for it now.

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