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Art Cashin says Wall Street continues to believe the U.S. debt limit will be raised in time to avert a default, but it won't happen until the last minute.
Cashin, UBS' director of floor operations at the NYSE, told CNBC's Bob Pisani around midday that traders think House Speaker John Boehner "have to look like they're going over the cliff until the the near the very end."
"It looks like Boehner may have to go to the Democrats. If he does then he risks his speakership, he has to worry about the tea party group, all of that will make him roll both these issues (the debt limit and the government shutdown) into one vote, or as close to one vote as he can."
Cashin predicts that "probably, at the last minute, it will get out before the House and a minority of Republicans and some Democrats will vote to pass it."