Billionaire financier and activist Carl Icahn warns that the financial markets are on a brink of yet another catastrophe.
Icahn is planning to release a video on Tuesday called “Danger Ahead” on his website,
warning that gridlock in Washington, Federal Reserve monetary policy and irresponsible CEOs are creating a recipe for trouble.
"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 said.
"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," he said.
He told CNBC
that low interest rates caused bubbles in art, real estate and high-yield bonds – with potentially dramatic consequences.
"It's like giving somebody medicine and this medicine is being given and given and given and we don't know what's going to happen — you don't know how bad it's going to be. We do know when we did it a few years ago it caused a catastrophe, it caused '08. Where do you draw the line?"
Icahn said he's "more hedged now than I've been in years."
"The Fed may have backed itself into a corner. They should have absolutely raised rates six months ago," adding it's difficult now because of global concerns.
In an interview with the New York Post,
Icahn also is now the latest to attack the 1 percent.
“I’m saying the wealthy, the elitists, are a little oblivious to the problems” facing the country.
“They are my friends but they feel a certain sense of entitlement.”
Icahn said a pal, a fellow 1-percenter, asked him recently what the first thing he would do if he were elected president, and he replied: “I told him I would make you pay some f- -king taxes.”
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