Reflecting back one year after the historic September that shook the financial markets, Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his insights.
“In fact, the worse part of the crisis came after that,” Cashin told CNBC.
“The commercial paper market freezing up, people preparing to take trillions out of money market funds. The Fed had to rush in and say [they guarantee people’s money], forgetting that the FDIC was only guaranteeing them $100,000-$150,000 in the banks—so we saw money run out of the banks.”
Despite the improvement since its levels during the March lows, Cashin said markets still remain “rather vulnerable” and the economy is still “not out of the woods.”
“They filled the patient with so much medication to stop the hemorrhaging,” he explained.
“The hemorrhaging looks like it’s stopped, but now we’ve got to unwind all that medication that the patient’s on without doing any more damage, and that’s going to be tough.”
Cashin said he remains cautious because the markets are still overvalued and overbought.
- Dick Bove: What You Should Know About Junk Now
- Economic Recovery 'Sharper Than People Think': Sonders
No immediate information was available for Cashin or his firm.
CNBC's Companies in the News:
- Capital One Credit Card Defaults Lower
- Alibaba Dives after Yahoo's Surprise Stake Sale