Art Cashin – A Eurozone Breakup Would Be Cataclysmic
KingWorldNews.com
April 20, 2012
Today Art Cashin told King World News that many investors, as well as professionals, believe there is a “central bank put” under the market. Cashin, who is Director of Floor Operations for UBS, (which has $612 billion under management), also warned that a breakup of the eurozone “would be cataclysmic.” Here is what Art Cashin had to say: “I see ongoing geopolitical risk out there and the market seem impervious to it. They have looked at what’s going on and think they have a kind of ‘central bank put.’ To use an example, when the US allowed Lehman to go under without any particular protections, and the world like it was beginning to come apart. The money market funds froze up, debt froze up.”
Art Cashin continues:
“The commercial paper market had transferred from financials to large corporations like Proctor & Gamble and others, who were denied a normal type of funding. When that happened and it began to move toward AIG, phones rang in every financial capital on the globe saying, ‘You can’t let that happen, this is too big.’
So, when AIG got bailed out, I think a lot of people said, ‘Well, now we know that when they are aware of the crisis, they won’t let it happen. So, I think we are kind of tiptoeing past events in Europe and other events, under the assumption the fire department will come to our rescue as long as they know there is a fire. I’m not so sure that will happen.”
The Rest…HERE
