Today 50-year veteran Art Cashin spoke with King World News about the possibility of a US downgrade, and the implications of what is happening with the Fed and other central planners around the world. This is also the first interview where Cashin gives his predictions, warnings and outlook for what investors should expect in 2013.
Eric King: “I’m putting you on the spot here, Art, and it’s interesting to hear you talk about this QE situation, but the Fed has been terrible at forecasting QE up to now. And the Fed minutes reminded me of their statement in 2012 that there would be ‘No more QE.’ That turned out to be wrong because by the end of the year we were having additional QE.
I believe in a way that the Fed minutes release was the same message today, essentially, from 2012, but just repackaged. I wanted to get your thoughts on the Fed giving this appearance they will back off on QE. I know there’s remorse, but there is also a theory out there that we are in a ‘QE to infinity’ situation.”