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Wednesday, April 7, 2010 as of 11:14 AM ET

The Casone Exchange
  • August 19, 2010 03:03 PM UTC by Cheryl Casone

    Best Guess: Market Roller Coaster

    Another rough ride for the markets but is it? I don’t know about you, but considering that Congress, traders, schools, and half of Manhattan is off somewhere sipping cocktails and playing at the beach, I don’t put too much into the wild swings.  However, there are some thing that I fear will receive a negative reaction after Labor Day. 

    Jobs numbers are awful, and I think with the slowdown in China, the less than austere austerity measure that are supposed to be on track in Europe and are not, we’re going to see a rough September.  When do things come back? If I knew that, I’d be having a cocktail and playing on the beach myself.  But, myself and the rest of the Fox Business team is here and working for you!

    Here are some Best Guess highlights from the past week:

    REBECCA DIAMOND: don’t buy prez obama’s speech that social security is not in a crisis.

    MATTHEW VETTO: best guess is that we’re going to see a mini M&A boom over the next several qtrs.  Companies have a lot of cash and access to cheap debt at a time where revenue growth is slowing.  This will drive them to make more acquisitions.

    CHERYL: Mcafee and Intel will announce a new security program for mobile devices.  It would be a broad program covering several devices, and gives Intel a footprint into the mobile market.

    LIZ MACDONALD: Mark Hurd from HP Will Pull a Thain: Just like former Merrill Lynch head John Thain went thru a cooling off period to reduce his personal radioactivity.  He will take some time before he accepts a job at another company—likely not a private equity firm, as some suggest. Too low profile for a big gun like Hurd. Talk is First Data Corp., a payment processor now needing a new CEO since its former head Michael Capellas stepped down in March.

    TODD SHOENBERGER: It’s nice that Fortune 500 companies are sitting on $2 trillion in cash and the potential of more buyouts may be on the horizon (i.e., Potash/BHP), but it still doesn’t cure the underlying problem of limited job creation in the U.S.  Companies are not using this cash to add to payrolls, and eventually this will be the primary reason why we may return to recessionary times.  My guess is we will hit double digit unemployment with the January nonfarm payrolls report.

    JORDAN KIMMEL: We will see an increase in M&A activity as companies flush with cash begin buying companies trading below their intrinsic value. Many companies remain bargains as the public continues to shun the market. The M&A activity will boost confidence and improve overall market conditions.

    MARC DECAMBRE: Elizabeth Warren finally gets a nod from the President to run a new consumer watchdog agency created out of the passage of the sweeping Financial Regulatory bill.

    REBECCA DIAMOND: Back to school sales will continue to be very slow. Kids know that the economy, housing, jobs are in trouble. They probably know someone out of work. They’ve had to cut back already. They will more easily accept their parents saying they’re not getting many new clothes this year.

Dana Swan

I am working on research that should prove that the economic problems we face are the direct result of the western world governments breaking economic rules, trade laws and not enforcing existing laws. And, they treat their previous actions as normal... Contrary to what our leaders tell us, The Western World agreed to use Keynesian Economic rules. These rules include that no continuous national debt should exist. The debt created during recessions must be paid back during economic expanisons. Our leaders act like it is NORMAL & BENIGN to continuously add to the National/Sovereign debt. This debt is now so massive and growing so quickly it may already too late to turn this around. This is the BIG ONE! The "Balance of Payments" agreements (laws) of the World Trade Organization state that every fiscal year the trade between 2 countries must balance out to zero leaving NO TRADE DEFICIT. This should be accomplished by allowing the currancy pair of those nations to adjust in value to compensate for uneven trade. Almost NO countries follow these laws they agreed to. The trade imbalance in the USA has spent our future to pay for our past easy living. Our leaders say trade deficiets are benign and nomal. This is a HUGE contributor to the National Debt! The immigrations laws we have were designed to allow our population to grow at a rate that would match the rate of job and economic growth, insuring wage stability and wage growth for the citizens. Unchecked population growth (plus other factors) have caused wages to grow about 5% slower than inflation rate for the last 30+ years (this has been a defacto recession compounding for 30+ years). Unchecked immigration has allowed huge numbers of criminals and individuals that needed medical, housing and other sevices provided for them even though they have never contributed to our system. They can recieve bennefits that even tax paying citzens can't recieve. Our leaders tell us that we should be compassionate. HOWEVER, charity starts at home and not enforcing these laws contributed to our present economic meltdown/contraction and ads to our National debt. The banks and lenders of all types were/are monitored by government regulators and they chose not to enforce the laws of finance and common sense. Over time, the bad lending prctices and outright corruption created a mountain of debts that grew unstable and uncollectable. Our government used the term "too big to fail" and gave them the money they lost. This was/is being added to our National debt, that is to be paid for by the taxpayer. These same banks are slow to lend it back to these same taxpayers. Why do the citizens accept this? Even the BP oil rig that blew up should have been shut down by government inspectors that found 600+ violations on that rig before it blew up. As a footnote, Goldman Sachs was the largest stock holder in BP (40%) and mysteriously they sold their entire position a few days before the rig blew. For some reason, the SEC has not publicly announced an insider trading prode yet? It goes on and on, almost every big problem we see in the country can be traced back to rules/laws broken or not enforced. If an individual breaks laws, the government prosecutes them. Who prosecutes the government??? This same behavior was/is exists throughout the entire Western World to various degrees, the worse the rule/law breaking, the worse the economic degredation. I postulate that the laws/rules were created by people with the good of the country/world in mind. So why were the laws/rules not followed? Lack of disipline? Ignorance? Just plain lazy? Or was it that the people who did not follow the laws/rules probably had their own self intrest/enrichment in mind. The net result was to leverage/indebt the future for a benefit in the short term with massive coumpouning effects over time. The citizens of the USA left the running of the country to our elected officals and government employees while we were busy running our own lives. This trust was apparently misplaced. We need good LEADERSHIP now, that will come clean about these problems. In order to correct our problems. We the people MUST: Learn what created our problems using honesty, openness and intelegence. Elect honest/informed Leaders that understand the fundamental problems and will put the good of the country above their own ambition/gratification We must Join together as a single TEAM and work hard together for this to work... . Will we? Can we?.... Only time will tell.....Dana

August 23, 2010 at 12:57 am

Kenneth Krieger

Housing is 32% of GDP. Hello Housing is 32% of GDP. Banks we bailed out are not lending. What harm would have been done if we closed those lying, cheating, over leveraged banks? If I can get a knee operation for $15,000, why do the insurance companies make me spend $60,000? The heath care lobby. Ken Krieger 239-283 7385 Cape Coral, Florida

August 21, 2010 at 10:30 am

Roger Niles

what did business Dennis Gartman say about the about the Australian dollar and the Canadian dollar?

August 20, 2010 at 12:45 pm

about this blog

  • Cheryl Casone joined FOX Business Network (FBN) in September 2007 as an anchor. Prior to FBN, Casone served as a correspondent for FOX News Channel’s (FNC) business unit and was a regular guest on FNC’s Your World with Neil Cavuto. Casone brings years of experience covering finance, business, and consumer news to FBN.

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