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

The Casone Exchange
  • October 25, 2010 09:33 AM UTC by Cheryl Casone

    Best Guess: Watch Cotton

     

    Jim Awad: Our big cities and the wealthy are doing well but middle America and the middle class are not-this is not sustainable-either the tide will rise or we double-dip!

    Jim Frischling: The mortgage and housing market took another blow this week.  If the suspension of foreclosures wasn’t enough, now the talk is of put-backs, where owners of securitized mortgage products can try to force the banks that sold them the products to buy back the defaulted loans…at par.  This a trillion dollar problem and banks stocks, particularly those of major mortgage players like Bank of America and JP Morgan got the most attention.  The banks simply will have the choice to negotiate, fight or close given the size of the potential problem.  If we learned anything from the government’s actions over the past few years it should be that “that too big to fail” is VERY real and something the Fed will continue to support despite comments to the contrary.  So don’t expect this trillion dollar problem to be anything near that level is reality.  People will talk about it, fingers will be pointed and blame will be assigned, but in the end, a settlement will be reached that is tough, but manageable.  The government didn’t save the banking system with its $800 billion bailout and countless other measures to just let the next difficult issue to appear to take it all down.  This issue, will be managed and handled.

    Mark Decambre: In many ways the 33 miners who just got rescued in Chile will encounter more jeopardy from the outside world then they ever faced in the nearly 70 days of being entombed nearly half mile beneath the earth’s surface. Dealing with a media and publicity blitz and dealing with their own trauma is going to be some of the bigger challenges.

    Last week I interviewed the CEO of VF Corporation, the maker of Wrangler, Lee, and Athletica clothing brands and told me exclusively that he would be raising prices because of higher cotton prices.  This continues!  Cotton hit new records not seen since the 1870’s last week, and with tighter supply and Pakistan out of the production picture due to flooding, major retailers will be raising their prices.  I don’t think holiday sales will be affected because those garments have already been passed through production, but garments now being manufactured for Spring will come in at a higher cost.    Robert Hardy over at Geostrat.com predicted this would happen at the end of September.  He was right then, and he says weather in China and Texas will affect the current harvests.

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You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material

October 29, 2010 at 8:07 pm

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You certainly deserve a round of applause for your post and more specifically, your blog in general. Very high quality material

October 29, 2010 at 8:06 pm

Carla, Ballwin,MO

Have you priced cotton sheets with a good thread count lately? Even on sale,they are extremely pricey. Did you know Southeastern Missouri is the northern most point cotton will grow in the US? I do need a new pair of Levi's - on sale hopefully!

October 29, 2010 at 8:21 am

sbenard

The price of cotton futures has been limit up 9 time this month, including today. Many other food and ag commodities are skyrocketing also. More money-printing by the Fed, as they have been saying they will do, will only ignite still more inflation. Bernanke has said twice in 3 weeks that he thinks inflation is TOO LOW! What planet is he on? It take 6-9 months for commodity prices to affect what we buy in the stores. Prepare for much higher inflation, thanks to the Fed!

October 25, 2010 at 4:27 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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