Cashin, who is Director of Floor
Operations for UBS, which has $612 billion under management, also warned,
“I’m not sure that the leadership is alert enough to be able to implement
the gold standard again, but they should really consider, at least, returning to
something like the gold exchange standard.”
But
first, when asked about how long and brutal this cycle is going to be for the
disappearing middle-class and people who are suffering around the world,
Cashin responded, “We’ve got a couple of things
going here. In the stock market, traders think of something called the 17.6
year cycle. The feeling on Wall Street is that you go through these 17.6 year
cycles, where you have a ‘fat’ cycle, where you can pick almost any stock you
want and it will go up.”
Art Cashin
continues:
“The other one in which the markets go up and down,
but don’t make any real progress. An example of that is the period from 1966 to
1982, where you started at about 800 on the Dow, and ended at about 800 on the
Dow, having gone to 1,000 several times, having gone to 500 several
times.
So with that as the backdrop, the current 17.6 year
cycle says we’ve got, probably, another 6 years to go. We (started this cycle)
in February of 2000. If the economy is going to mirror the market, in some way,
then for these people to get back on their feet, we may not be looking at
months, we may well be looking at years, and several of them at that.”
When asked about discussion
beginning to surface about a move to the gold standard, Cashin replied,
“I think it would be an extraordinarily cold shower. I do know it is being
discussed. There may be half steps that they can look at..."
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