Art Cashin's Warning: We're Seeing More Bubbles Inflating

Discussion in 'Economics' started by S2007S, Nov 17, 2009.

  1. S2007S


    Even Cashin knows there are bubbles on the horizon yet the fed continues to deny this, wonder who is right and who is wrong.

    Greenspan caused the last credit crisis bernanke and friends are causing the next one....

    Art Cashin's Warning: We're Seeing More Bubbles Inflating
    Published: Tuesday, 17 Nov 2009 | 11:16 AM ET
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    By: JeeYeon Park
    CNBC News Associate

    The U.S. central bank is monitoring the declining value of the dollar closely as part of its commitment to both jobs growth and price stability, said Federal Reserve Chairman Ben Bernanke on Monday. Art Cashin, director of floor operations at UBS Financial Services, shared his insights on the Fed and the markets.

    “Not only did Bernanke come out and say no bubble, but last night, [Fed Vice Chairman Donald] Kohn came out and aggressively said no bubble—in fact, part of our policy is to get people to move into riskier assets,” Cashin told CNBC.

    “And [Federal Reserve Bank of San Francisco President Janet] Yellen came out this morning and said no bubble. So you almost get a contrary sense when everybody on the Fed is saying there’s no bubble here—don’t worry about our policy.”

    He said former Fed chairman Alan Greenspan once helped cause a previous bubble by holding rates low. Cashin fears a similar situation happening with the current Fed holding the rates low again.

    “And it looks like we’re having some more bubbles beginning to inflate here,” he said. “So [the Fed] felt like they had to come out and deny it.”