Billionaire Carl Icahn Sees Economic Collapse and Stock Market Crash in 2016
Carl Icahn is warning of danger ahead, citing a potential economic collapse due to a stock market crash.
At least, that’s what he hinted at in a trailer for a video he will be releasing on Tuesday. (Source: Carl Icahn, last accessed September 29, 2015.)
The legendary billionaire investor warns that low interest rates are giving rise to financial bubbles in real estate, art, and higher-yield bonds. Taken together, this swelling of financial markets will only have one conclusion according to Icahn.
And that conclusion is a stock market crash.
“I’ve been worried for the last five, six months about the market and the economy and the dangerous spot that we’re in,” Icahn explains.
“I did speak four or five times warning about the problems we have. I want to speak out now because—I know this may sound corny, I grew in the streets of Queens—I love this country, and I feel strongly about the dysfunction going on in both Washington and the boardrooms of corporate America.”
Icahn goes on to outline the dramatic consequences of letting a possible economic collapse brew for years. He compared the current state of global markets to a sick patient being given increasingly higher dosages of medicine, without thought to what will happen as a result. If we know the consequences of financial bubbles, such as the financial crisis of 2008-2009, why are we not doing more to ease the pressure, asks Icahn?
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The activist-investor told CNBC’s Scott Wapner that the current low interest rate environment has led to a considerable and artificial asset price bubble to rise, reaching levels that cannot be supported by the underlying economic fundamentals. (Source; CNBC, last accessed September 29, 2015.)
The famous investor says that he is now more hedged against a possible stock market crash than ever before, citing his great concern for a global economic collapse.
The video, which Icahn says will go over several of the most critical matters he sees are a threat to U.S. markets, will be posted on his web site on Tuesday, September 29th.
Icahn stated that he has been extremely worried about financial markets for the last half-year or so, and although he has spoken out about the dangers of a looming economic crash, feels compelled to do it again as an appeal to the public.