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Art Cashin: North Korea Nukes 'Perversely' Good for US

Sliding home prices, more trouble in the Eurozone and another North Korean nuclear bomb test: How will these affect the stock markets?

Art Cashin, UBS Financial Services director of floor operations, offered CNBC his insights on Tuesday.

Traders engaged in "a lot" of chatter over Kim Jong-Il's latest saber-rattling, Cashin said — but not out of fear of North Korean aggression.

"It's not so much that they had underground nuke tests, but: How is the world going to react to it? Who's going to push what buttons next? And [it's] another test for a new president."

But Cashin said the news has had a "perversely beneficial" effect, "putting a bid into the dollar, putting a bid into Treasurys."

Also helping the U.S.: other peoples' problems. "Things are certainly much worse in Europe. People are taking another [critical] look at the German banks. Eastern Europe is certainly a mess, but it's hidden under the radar," he said.

But Cashin said the threat to the US dollar has not passed entirely:

"I worry about critical mass. If people start selling the greenback and it begins to accelerate, like a pile of snow, it could turn into an avalanche."

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Disclosures:

Disclosure information was not available for Cashin or his company.

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