Art Cashin – Enormous Danger Facing US & The World
November 15, 2013
Today 50-year veteran Art Cashin warned King World News about the enormous dangers facing the US and the rest of the of the world, which could wind up creating tremendous turmoil around the globe. Cashin, who is Director of Floor Operations at UBS ($650 billion under management), also spoke with KWN about gold.
Eric King: “Art, you were one of the youngest traders to ever earn a seat on the (New York Stock) Exchange. You’ve been doing this for half a century. What are your big worries going forward? What has you concerned?”
Cashin: “A couple of worries: Number one, that the bond market may decide it’s not going to wait for the Fed. It’s going to make some adjustments. And if interest rates begin to move independent of the Fed, that could be a devastating problem.
Secondarily, some of the recent data has weakened. And as Ray Dalio said in the piece that I cited, and the piece that you referred to (earlier), the programs that the Fed has have shown very little efficacy, (however) they have helped distort things.
And I think his (Dalio’s) phrasing was that he was not so much worried about whether they would ease up on the gas pedal, but in case of a crisis, in case of an exogenous event, was there any gas left in the tank? You are already at zero rates. You’ve done quantitative easing. Heaven forbid if something came up and the economy slowed, what is left in the gas tank?”