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In an interview with King World News, he said Greece's deal with Europe to extend its bailout by four months does nothing to stave off the potential for a real economic disaster:
"This can turn into a financial Ebola. We learned from Lehman and other things that people don't fully understand the fact that we live in a world of geopolitics and linking from continent to continent - contagion can break out anywhere and you never know how far it goes."
Cashin said Europe agreed to the deal out of concern that it could collapse Greek banks. "We saw it in Cyprus," he said. "We saw it the last time around in Greece. And if that had started, they knew things would have gotten out of control. So they compromised and bought a little more time. There is absolutely no substance to this deal (that was just announced)."
Cashin added that it looks like Greece is basically just kicking the can down the road.
"It looks to me like all they (Greece) have bought here is time. The Greeks asked for six-months and they (the EU) gave them four-months. They (the EU) told Greece that if they lived up to certain conditions, the payments that were already due would be made."
Eurogroup president Jeroen Dijsselbloem announced the agreement Friday that will give the new Greek government more time to bargain for longer-term debt relief with its creditors.