Two weeks ago we posted the most recent interview by King World News of long-time market veteran Art Cashin, in which the UBS market strategist prophetically pointed out that the "Fed is walking a tightrope in a Hurricane." As the data has confirmed since then, the winds are picking up, and the market is starting to finally realize the gargantuan task the Fed is faced with, in its attempts to flood the market with a second tidal wave of free money. Today, Cashin is once again on KWN, discussing this week's disappointing data, primary the negative Philly Fed reading and the first half a million print in initial jobless claims in a year. Cashin summarizes the failed spin of the recoveryless recovery as: "the two main points of pain are employment and real estate, and both of them are showing no signs of getting any better." Another topic touched upon are technicals, which in addition to the much discussed Hindenburg Omen, investors also have to worry about the 50 DMA, and the market would have a second back to back close below the indicator if stocks do not pick up in the coming week. Cashin is also very skeptical on earnings, whose quality continues to deteriorate as it comes mostly due to SG&A cuts, resulting in wage deflation: "the pressure on wages continues and that is not inspiring a lot of hope." As for further Fed QE episodes, Cashin does not believe additional monetization would have any incremental impact: "what's happened is - Bernanke dropped the money, but when it came on the ground people raked it up, put in the garage and went back to sleep, so things are not happening." Lastly, Cashin says that "the bond market is discounting some very troublesome times ahead - people want the return of their money, rather than a return on their money. There is ongoing concern about the state of the financial system itself." Cashin's conclusion: "there appears to be a bull market in pessimism - the bond market has a slightly better record in calling things than the stock market." Looking forward, "you may get a small bounce if nothing geopolitcally happens over the weekend, there are concerns over Iran, so if nothing happens there you may get a small bounce, but I would be cautious until the market can prove to me its got it balance again."