Market “Earthquake Is Coming” – Icahn Warns “A Lot Of People Will Pay The Price Like In 1929”

Newz Sentinel ^ | 2-6-2018

[blam]

Billionaire investor Carl Icahn spoke to CNBC via telephone this morning and had some very ominous warnings after what he has seen in the last few days.

Reflecting on the market’s moves recently, Icahn shocked the anchors by saying:

“This is something we’ve never seen before… I don’t remember ever seeing a market with this kind of volatility over two weeks.“

“The market has become a much more dangerous place [due to index funds and ETFs]… it’s like 2008 where everyone was buying mortgages and CDS.”

Concluding that: “Passive investing is the bubble right now.”

“There is going to be a major, major, major correction.”

“This is a manifestation of a real deep problem we have in our markets.“

“There is a huge bubble of passive money flowing in… a sort of euphoria and a lot of people are going to pay the price just like in 1929.“

Icahn then took his warning to 11…

“I do think the market will bounce back but these are the rumblings before the earthquake.“

“The market is telling you something… it’s telling you it’s very dangerous…it’s way over-leveraged.“

Which, as we noted previously, is a fact…

And that is one reason why Icahn fears…

“Eventually, there’s going to be a bigger problem than 2009 and 1929, eventually. A major storm is coming, could be 5 years, could be 5 months.”

Icahn ended by noting that “no one can tell you what the market is going to do – its almost farcical to think you can,” but added that this is what he thought would happen, based in his research.

As a reminder, Icahn warned previously,

“I am still concerned that one day you’ll see a break like you had a few weeks ago…but it won’t come back.”

(snip)

[blam]

No Comment.

[John W]

That’s it, taking everything out. /s

[central_va]

Free Traitors™ tell me all the time Smoot-Hawley Act caused the Great Depression. Since we have basically zero import duty now we should all be safe./sarc

[Spiridon]

I hope he isn’t right but I am aware that some folks have his opinion.

[nopardons]

He must have decided to go short. *sigh*

Gee Carl...just STFU !

[SoFloFreeper]

“I do think the market will bounce back but these are the rumblings before the earthquake.“

So is he putting all his money is bonds?

[umgud]

Oh geeze, I think I’ll cash out and put all my money under my mattress.

[Bratch]

Wall Street -vs- Main Street: Reality Sell-Off Underway….

Posted on February 5, 2018 by sundance

The NAFTA sell-off is underway.  Relax.  No big deal.  The “NAFTA Reality Correction” is approximately 5 to 7%.  Multinationals hold greatest exposure. Everything is temporary.

(LINK To Story)

Twists and turns as Wall Street paper economy shifts toward ultimate equilibrium with Main Street real economy.  Real company P&L results (MAGA) will eventually replace speculative stock valuations.  Volatility is the norm while navigating the space between.

[eyeamok]

Not much to say, the land of Free Money has put the nations wealth in to the Casino by default instead of a savings account. WHat could possibly go wrong??

[Leaning Right]

> A major storm is coming, could be 5 years, could be 5 months. <

Well, okay Carl. That was helpful.

[PAR35]

The old buy high and sell low strategy.

If you own the stock outright, it’s just a matter of time until it recovers. Folks who buy on margin might want to sweat a little.

[Brilliant]

The media is playing up the recent volatility in the hope that it will cause a crash that will destroy Trump and the GOP.

I think this is a correction. May or may not have more to come. I suspect the market will go sideways for the next year or so. But you can still make money on individual stocks, and on dividends.

[Revolutionary]

All Jerome Powell has to do is come out and say that economic growth does not cause inflation. Money for nothing does. The more people move from welfare to work, the less inflationary pressures we will have.

[taxcontrol]

I had to take everything out during Obama’s recession and the resulting 2 layoffs. So, I am not even in the game.

[OttawaFreeper]

What is the advice from Duke and Duke?

[familyop]

Dow up 567. There was no crash. Maybe that’s all they’ve got. Vote Republican for congress. ;-)

[crz]

Says one of the most feared men on the street.

Makes one wonder if he isnt saying that to drive it down so he can cash in.

[C210N]

A major storm is coming, could be 5 years, could be 5 months.

Let me help, as he left out a few possibilities, but surely meant to include: 5 minutes, 5 centuries, 5 nanoseconds, 5 fortnights.

[familyop]

With consumer spending and business activity having been up through the usually hard time of the year, the markets should stabilize. We’ll see.

[bgill]

What goes up, must come down.

Ebb and tide.