Art Cashin: Spain Could Be the New 'Lehman'

Stocks fell Tuesday as fear of contagion from the European debt crisiscontinued to rattle investors. Art Cashin, director of floor operations at UBS Financial Services, shared his market outlook.

“People think we’ve seen his movie before in a different version,” Cashin told CNBC.

“Was Greece in fact the Bear Stearns of this movie and are they now coming around with the CDS spreads?—The belief is that Spain could be Lehman and we don’t want to see a repeat of that.”

In addition, Cashin said he sees an “inverse Pavlovian reaction” between the stock market and the dollar.

“Yesterday, the dollar started to get back some of its earlier gains and just like Pavlov’s dogs, the stock market started to move back up—so that link seems stronger than ever.”

Scorecard—What He Said:

  • Cashin's Previous Appearance on CNBC (Nov. 24, 2010)

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Tuesday's Dow Laggards (as of this writing):

Hewlett Packard

Home Depot



Walt Disney


No immediate information was available for Cashin or his firm.