Mr. Icahn thinks he can push market over the edge

[der_kommissar]

Icahn is right though. So many large companies have levered up their balance sheets at low interest rates to buy back stock at ever increasing prices in order to manufacture rising EPS. When there's a recession, these companies will come under pressure of their heavier debt burden. He also pointed out that the high yield market is $2 trillion now vs. $1 trillion at the 2007 peak.

His investment vehicle, IEP, has done poorly due to his large energy positions that have been crushed by the commodity collapse. Investor Jim Rogers says he doesn't see a lot of supply coming to the market. Maybe once China's current collapse is over in a few years, commodities would form a bottom.

Mr. Icahn says he's trying to warn about the danger of ZIRP to hopefully prevent catastrophe, but as John Burbank says, the situation of this non-mean-reverting divergence is going toward the path of inevitability.

Yes, good summary...this is just a small portion of the distortion of ZIRP...i.e. the mis-allocation of capital manifests itself in ever more perverse manifestations...it's also interesting to take note of the sectors that experienced large credit growth (namely student loans), and others have noted, this was an attempt to mask the weakness of the job market and the "career student" who also used those loans for "lifestyle" spending...

 

[der_kommissar]

...And OMG declarations of the things wrong with the monetary system and markets... All the things that are blatantly obvious to all of us, and have been for a very long time.

Drivel, pure drivel - not worth watching.

Well, I agree with you to an extent...Most of us have seen what's wrong with the monetary system and markets, but it's noteworthy because few of the "big shots" ever break from the narrative of "green shoots" and other pablum that we are inundated with every day...

 

[blakpacman]

 

[murray t turtle]

View attachment 157383

Danger Ahead video:
http://carlicahn.com/

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Good points; he tends to be early, consistently early. But He is wrong, so wrong on raising taxes-instead -cut spending.Probably plans early warnings[like june-2015] that way, plenty of notice; good warnings. I remember him from Nabisco Group Holdings takeover.Funny cartoon= low interest rate bus ; but the Fed watches Black Rock.Great practical mind,good short seller, simply wrong on raising taxes Thanks for the link

 

[SunTrader]

Icahn the blowhard is as usual, as always, "talking his book".

And just like Donald The Trump can talk and talk.