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Art Cashin continues:
“So one of the things we’ve all been wary of and watching for is, does it come to a critical mass? Is there a time when all of the Greek citizens rush in and say give me my money. That would be the first critical sign that perhaps default would be looming because the belief in it would have grown to the point where Greece would have no other recourse.
Now it’s happening in slow motion and what all savvy observers will do is keep watching it. If it starts to accelerate you want to be very careful then because these things tend to feed on themselves. But so far they’ve been walking away with the money, not running away with the money. When they start to run, that’s the time to get worried.”
When asked about the euro, Cashin responded, “Well, that’s one of the great questions that traders talk about. Everybody was very down on the euro. The CFTC keeps track of some of the open interest and had reported that the shorts in the euro positions were among the largest around.
Now when a trade gets that crowded it’s always dangerous. The ECB seems to be pouring money out, they are going to come out with another LTRO offering this week, that should weaken the euro. But because of the short position there is upward pressure (in the euro).
So we’re seeing a near-term short squeeze in the euro and that’s impacting several markets. You saw yesterday, for example, gold bouncing and it’s having a pretty interesting effect on oil also.”
Art Cashin is a legend in the business. He has been at his craft for over half a century and quite frankly he is an encyclopedia of knowledge when it comes to markets. Cashin discussed what is happening in key markets and what KWN listeners need to watch going forward. The KWN audio interview with Art Cashin is available now and you can listen to it by CLICKING HERE.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
Eric King
Art Cashin - Bank Run May Accelerate & Short Squeeze in Euro
Today Art Cashin told King World News that we are witnessing a slow motion bank run in Greece. Cashin, who is Director of Floor Operations for UBS (which has $612 billion under management), also said it needs watching because if it accelerates it would be the first sign Greece is going to default. Here is what Art Cashin had to say: “What you are watching, and people always use the example of a slow motion train wreck, what we are seeing so far is a slow motion bank run. If you were a Greek citizen and you thought there was some risk that over the weekend suddenly the euro could be replaced with the drachma you would be worried.”
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
February 24, 2012
