The World May Be Facing Another Disastrous 2008 Collapse

Saturday, May 10, 2014
By Paul Martin
May 10, 2014

Today 50-year veteran Art Cashin warned King World News that the world may now be facing another disastrous 2008-style collapse. Cashin, who is Director of Floor Operations at UBS ($650 billion under management), also told King World News what he said this morning on a private conference call to big institutional clients about the dangers of a collapse and subsequent panic. Below is what Cashin had to say in this powerful interview.

Eric King: “Art, you’ve been doing this for half a century and I always like to ask you: What is the great danger facing the world today?”

Cashin: “Obviously geopolitics can be a great danger. Heaven forbid there are still some nuclear arms out there, and if somebody makes a mistake and overreaches — you’ve had some of these uprisings in and around Ukraine they have a very paramilitary look to them. And it’s not just people hurling paving stones.

“They have rocketry and other things. So this could rather easily escalate. You tend to hope that people will be sane enough to keep something like that from happening. The other problem is that even with the sanctions and other things, if that economic game of chicken begins to go, we learned far too painfully in 2008 what can happen when contagion springs out. I had that discussion with some big institutional clients this morning. I said:

“You have to remember what things were like then (in 2008). Sometimes you can’t sell what you want to sell.
If markets become less liquid, you are forced to sell what you can sell, and that provides a contagion
that is pretty scary because people base their strategies on normal events. And if we get into an
abnormal world, as we did financially in 2008 and 2009, it would not take much to tip it over.”

The Rest…HERE

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