Art Cashin: Bank-Bashing May Cause Bear Market
US markets rose Monday, after logging the worst week since March 2009. What's driving today's stock action and what's next? Art Cashin, director of floor operations at UBS Financial Services, offered CNBC his stock market insights.
Cashin said the main factor lifting markets is "the Bernanke Bounce": optimism arising from hopes that Ben Bernanke is closer to winning a second term as Federal Reserve chairman.
"People are hoping that people in Washington are going to look for solutions instead of scapegoats — then maybe we can get somewhere."
But Cashin does not share that optimism. Decrying a "populist anti-bank" tone among legislators, he fears that lawmakers may "inadvertantly inhibit liquidity" by scaring financial firms with talk of regulatory clamp-downs.
Could such a liquidity freeze engender a new bear market?
"It has that possibility," mused Cashin.
For Cashin's advice re the next 2 trading weeks, watch the full interview.
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CNBC's Companies in the News:
Bank of America
Disclosure information was not available for Cashin or his company.