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Art Cashin continues:
“Next week could be critical. It is interesting that as you and I speak near the close here, there is no sign of a rally. Usually going into a weekend there would some short covering -- that’s almost a Wall Street tradition.
With no short covering coming in here, it underscores the great concern that the players have about potential surprises for the weekend, and potential surprises for Monday morning. If it is in fact a global concern, which it appears to be, the level of contagion can be very broad.
The great risk here is that at the ATM’s in Madrid or Athens, if people start saying, ‘I want to get my euros out now because I don’t want the place to lock up overnight or over the weekend,’ if that were to happen, that would turn this into a crisis that would move right past the leadership. That’s the great risk here.
With so many things hanging by a thread here, it would not take much to move things along. That’s why buyers tend to be on the endangered species list. The markets are all set up so that the first wrong move could get them all potentially spiraling (lower). If you look at what happened in Europe today, Spain was basically neutral.
It wasn’t the weak links they went after. They went after the core. They went after the German and French markets, and that tells you the concern is spreading. People don’t feel a great sense of safety, and they are looking to raise cash anywhere they can. That’s when things can get dangerous.”
Cashin also added: “Bernanke is going to have to hunker down and see if he can figure out something brand new and creative. So far, he has followed his Bernanke helicopter speech to the letter. This weekend I will be re-reading it again to see if there are any nuances that may give us a clue.”
When asked about the spectacular move in gold today, Cashin responded, “In the Middle Ages, people were always looking for alchemists who could change the substance of something into gold.
This morning at 8:32 AM (EST), gold converted from just another asset class, back into safe haven status. People scrambled saying, ‘I’m not sure which currency, I’m not sure which continent, which area can offer me safety. Let me buy some of the yellow metal.’”
This is an extremely powerful and timely interview with Art Cashin. This is an interview KWN readers and listeners globally will not want to miss. The King World News 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.
The interviews with Don Coxe, Global Strategy Advisor to BMO ($538 billion) & Rob Arnott (Oversees $100 billion) are available now. Also, be sure to listen to this week’s line-up of other KWN interviews which include Newmont CEO Richard O’Brien John Hathaway and James Turk by CLICKING HERE.
Eric King
Art Cashin - Precipice of a Broad, Dangerous Global Contagion
With global stock markets plunging and gold rallying, today Art Cashin told King World News that we are on the verge of a broad and dangerous global contagion. He also said that market participants “are looking to raise cash anywhere they can.” Art also commented on the spectacular rally in gold today. Cashin, who is Director of Floor Operations for UBS, which has $612 billion under management, also warned about, “the great risk here.” Here is what Art Cashin had to say: “For months now we’ve been looking at Europe and seeing that on the precipice of contagion. What looked like something that was euro-centric has now become a global concern.”
© 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.
June 1, 2012
