Art Cashin – Fed May Have To Disastrously Reverse QE
KingWorldNews.com
December 27, 2013
Today 50-year veteran Art Cashin warned King World News that the Federal Reserve may have to disastrously reverse course on its tapering of quantitative easing or QE. Cashin, who is Director of Floor Operations at UBS ($650 billion under management), also spoke about what this would mean for shocked market participants.
Eric King: “Do you expect any surprises for 2014?”
Cashin: “There are always surprises. You will recall that although she hasn’t been confirmed by the Senate, Yellen is to take over as the Chairman of the Fed. And every Fed Chairman, not only the ones that I’ve known over 50 years but the ones that have been there for the full 100 year history, have been tested in their first year by some market event. For Greenspan it was the Crash of 1987, and for Bernanke it was the Great Recession.”
Eric King: “Of course the tapering just happened. What do you expect that will mean going forward, because they handed the reins to her (Yellen) with the stock market roaring and the tapering taking effect?”
Cashin: “I’m going to be very interested because we are seeing one possible impact of that already and that is mortgage rates are creeping up — therefore, mortgage applications have dropped off. We’re back to mortgage applications falling to the level they were when Lehman was being deconstructed.
The Rest…HERE
