Standard & Poor's and Fitch warned they may cut Ireland's credit rating againdue to the rising cost of recapitalizing nationalized Anglo Irish Bank, pushing Dublin's borrowing costs to fresh peaks. Art Cashin, director of floor operations at UBS Financial Services, shared his insights.
“Looks like some of the European problems may be resurfacing,” Cashin told CNBC.
“We thought it went away, but it hasn’t completely gone away and I’m not sure if we’ve been inoculated against it.”
Cashin said if the economic numbers in the U.S. continue to weaken, the Federal Reserve would be forced to take action.
“If the numbers come in really lousy, especially on the jobs market, then [the Fed] will get forced into the act with the election coming up,” he said.
In addition, he pointed out that there is some resistance on the S&P 500 at the 1,148 to 1,152 level.
“It has butted into that area three times in the last week and that may be holding [stocks] back.”
Scorecard—What He Said:
- Cashin's Previous Appearance on CNBC (Sept. 27, 2010)
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No immediate information was available for Cashin or his firm.