Posted on 02/06/2018 3:41:06 PM PST by 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)
(Excerpt) Read more at newzsentinel.com ...
In a thorough study of literature about the Depression, economic historian Eugene White claims that the rate increases were not sufficiently aligned with sagging stocks. But White’s 1994 work did not take into consideration the DEFLATION that had been going on for several years. Doug Irwin calculated that the deflation-adjusted impact of S-H was a stunning five percent of GNP. In perspective, that would be 2x higher than Katrina, four times worse than the economic impact of 9/11, and five times worse than the impact of the Navigation Acts blamed for starting the American Revolution.
Now, I’m not saying other things were’t going on to cause the Great Depression. Milton Friedman himself partly blamed bad monetary policy like I think you might have argued before, as well as Hoover’s policies, agricultural bank failures and deflation. H-S did have a big impact but perhaps it wasn’t a main cause, but it’s impact was not small by any stretch.
I believe in free trade but that doesn’t make one a globalist, just someone who sees the value of comparative advantage. Does that mean I’m against all tariffs? Absolutely not. If a country imposed tariffs on us or sub sizes an industry we should reciprocate. But it should be a Industry by industry or country by country basis. They should be targeted in other words to minimize their deflationary effect on the economy.
Try to use basic math here. Trade was 3.5% of the total economy in 1930. 1.5 % imports and 2% exports, we had a surplus yeah! If you were to take away ALL trade from the economy then the most the economy would shrink(temporarily I might add) is 3.5%. There is no way to get to 5%.
Use your head man. If that is possible for a Free Traitors™. Doug is just another globalist propagandist. I real rat.
If all these fears were warranted, then the companies giving bonuses and making other great plans are all idiots and who's gonna believe that?
When there are rich people that the left are not trying to eat, you need to step back and ask “why?”
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