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 markets moves recently, Icahn shocked the anchors by saying:
This is something weve never seen before I dont 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] its 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 its telling you its very dangerous its way over-leveraged.
Which, as we noted previously, is a fact
And that is one reason why Icahn fears
Eventually, theres 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 youll see a break like you had a few weeks ago but it wont come back.
(snip)
(Excerpt) Read more at newzsentinel.com ...
No doubt the markets are over valued by traditional fundamental market valuation methods. If people get behind Trump and push for strong economic growth then we may outgrow our problems or at least keep pace.
If not, well, then it sucks to be us.
One thing for sure, when you hear people starting to say, "Yeah, but it's different this time", it's just about time to head for the bunker.
I believe there are market variables which are coinciding that we’ve never seen before:
Algorithm driven trading,
True value in the underlying equities,
Growing economy to include employment and salary,
A tax incentivized economy,
Low interest rates,
A Fed and major investors who hate to see this level of growth and success under Trump.
Trading on margin is stupid and dangerous...that said, tax reductions haven’t kicked in...some have been priced in and I don’t see a huge crash unless Icahn is teaming with Soros and other billionaires hedgies who hate Trump...oh, that was redundant, sorry.
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.
...
I’d like Powell to just be vocal and calm the jitters...not mine, but the masses.
No Comment.
><
I wish the President would stop commenting about the Stock Market.
.
No surprise whatsoever!
Wealthy Democrats plan to destroy the economy to “get Trump.”
Welcome to the plantation!
.
Is he trying to tell us he’s going to cash?
The more people move from welfare to work, the less inflationary pressures we will have.
True, that!
You have to remember, Icahn did NOT make his money “the old fashioned way.” If the table can’t be titled or the dice weighted, Icahn doesn’t play. That’s only for the little people.
You have to remember, Icahn did NOT make his money “the old fashioned way.” If the table can’t be titled or the dice weighted, Icahn doesn’t play. That’s only for the little people.
He’s been in cash.....or at least espousing cash, since 2015.
Smoot Hawley was enacted the year after the Great Depression started, so it didn't cause the Depression. Did it make the Depression worse? Yeah, it did.
Thank god I put my money in Bitcoin.
Looked on Reuters to get his comments.
He’s raving about Bitcoin and what he calls “crypto currencies”. I will agree with him on that. I know a few people crazy about Bitcoin, I have to look at them cross-eyed. He says the ETFs and ETNs are problematic. Also he describes himself as “not that bearish”. I get the feeling he’s out for a few sectors.
After that fatefull market crash starting in 1929 our leaders of the time put in place the GlassSteagall act. It separated the Good bankers from the Greedy slithering snake ones. Or in other words, it separated fundamentally solid banking from speculative investment banking. All was fine for an entire generation.
Both Republicans and Democrats alike finally gave into the greed. They dumped GlassSteagall. Then in less than 10 years- came the crash of 2008. Taxpayers got to bail out the players. And everyone is at it again. Placing their bets-spinning the wheels of chance- not based on fundamentals. Every day citizens money laying on the poker table.
What could possibly go wrong?
Doubtful. I don’t think the fundamentals are indicating 1929.
.
Wrong !!!
Time for the president to hit twitter with the declaration that Ichan, Buffet, and Soros plan to take the economy down to stop the swamp from being drained.
As our best senator is fond of saying “its time for truth.”
.
.
The Fungal-mentals are indicating that they are willing to do whatever it takes to stay out of Gitmo!
.
Stock market runs on 2 things. Greed and fear.
Been running on greed for quite awhile, including the past 2 weeks with a lot of profit taking.
Fear took over in 2008 for about 6 months.
If this market drops another 5000 points fear may kick in again.
You don’t get what I meant.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.