Art Cashin: TARP Getting Worse Than 'Sweden'

Art Cashin, UBS Financial Services director of floor operations, offered CNBC his take on traders and the market Tuesday.

On the one hand, the drastic pullback expected by many has not yet materialized. He explained that the market can be primed for the big drop, then bypass it safely, if the conditions and context just aren't there.

"Yell fire in a dark theater and everyone panics. But yell fire in an open meadow and the birds stop singing for 11 seconds," Cashin said.

But he expects more pressure on financials, as the original concept of the TARP is "morphing rapidly to things I never dreamed I'd see."

He pointed to the inclusion of policies including executive pay caps, the ousting of General Motors' then-CEO Rick Wagoner and the conversion of government-controlled bank shares from preferred to common "somewhat bewildering."

"We're making Sweden look like the Wild West," Cashin warned.

Top TARP Recipients — Where They Stand:



Bank of America

JPMorgan Chase

General Motors