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.
Point/Counterpoint:
- Bull Market Not Over—Use Dips to Buy: Pro
- Obama Bank Plan Hurts Financials: Investor
______________________________
More Market Analysis:
- Cramer: Could Obama Cause 1,000-Point Correction?
- FDIC Mulls Securitizing Troubled Bank Assets: Report
- 'Fast Money' Traders: Goldman, Wells Make Furious Moves
______________________________
CNBC Slideshow:
______________________________
CNBC Data Pages:
______________________________
______________________________
CNBC's Companies in the News:
Wal-Mart Stores
Apple
Halliburton
Citigroup
Bank of America
______________________________
Disclosures:
Disclosure information was not available for Cashin or his company.