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Carl Icahn's take on the economy

CatBoxCatBox Senior MemberSt. Pete, FLPosts: 3,706 Captain
Seems to be a doom and gloom guy, but he does make some good points here. You do not get to be as rich as he is by being an idiot :shrug

Worth a few minutes IMHO

Replies

  • WaterEngineerWaterEngineer Senior Member Posts: 24,412 AG
    Executive summary please. I'm not watching fifteen minute worth. Thanks.
  • CatBoxCatBox Senior Member St. Pete, FLPosts: 3,706 Captain
    I am NOT a financial guy and I am sure that someone will be along with a chart showing that this is all Reagan's fault....

    From Zero Hedge

    Low rates and asset bubbles: Fed policy in the wake of the dot com collapse helped fuel the housing bubble and given what we know about how monetary policy is affecting the financial cycle (i.e. creating larger and larger booms and busts) we might fairly say that the Fed has become the bubble blower extraordinaire. See the price tag attached to Picasso’s Women of Algiers (Version O) for proof of this.

    Herding behavior: The quest for yield is pushing investors into risk in a frantic hunt for yield in an environment where risk free assets yield at best an inflation adjusted zero and at worst have a negative carrying cost.

    Financial engineering: Icahn is supposedly concerned about the myopia displayed by corporate management teams who are of course issuing massive amounts of debt to fund EPS-inflating buybacks as well as M&A. We have of course been warning about debt fueled buybacks all year and make no mistake, there’s something a bit ironic about Carl Icahn criticizing companies for short-term thinking and buybacks as he hasn’t exactly been quiet about his opinion with regard to Apple’s buyback program (he does add that healthy companies with lots of cash should repurchases shares).

    Fake earnings: Companies are being deceptive about their bottom lines.

    Ineffective leadership: Congress has demonstrated a remarkable inability to do what it was elected to do (i.e. legislate). To fix this we need someone in The White House who can help break intractable legislative stalemates.
    Corporate taxes are too high: Inversions are costing the US jobs.

    http://www.zerohedge.com/news/2015-09-29/carl-icahn-says-market-way-overpriced-warns-god-knows-where-going
  • Big BatteryBig Battery Senior Member Central NCPosts: 22,850 AG
    2007/8 all over.
  • JAPJAP Senior Member Posts: 3,373 Captain
    I believe he's right about keeping rates too low for too long and the distortions it created in the credit markets and the availability of financing.
  • cprcpr Senior Member dwcPosts: 9,299 Admiral
    Funny how the dow has dropped 2000 points and there is very little mention of it on the nightly news. Lib media can't have BO looking any worse.
    "The test of a first-rate intelligence is the ability to hold two opposed ideas in the mind at the same time, and still retain the ability to function." F. Scott Fitzgerald

    "Prediction is very difficult, especially if it's about the future." Niels Bohr
  • Baits OutBaits Out Senior Member Palm Beach CountyPosts: 12,328 AG
    So what else is new? !!

    Specially since he and Trump are buddies.

    A southeast Florida laid back beach bum and volunteer bikini assessor who lives on island time. 
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