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Carl Icahn Is "Extremely Worried" About Stocks, Warns "It's Not If, But When It Will Happen"

Tyler Durden's picture




 

"This market has a lot to be concerned about," warns Carl Icahn in an interview with FOX Business Network's Trish Regan, slamming Fed policy, "by keeping interest rates this low you are creating bubbles that you don’t even know about." While mainstream media pundits are instantly feverish over every bullish AAPL word the aging activist has to say (or tweet), it seems that when it comes to facing facts and reality of the broad market, few, if any, are willing to share his thoughts as he concludes, "it’s not just a question of it could be the beginning... It’s not will it happen. It’s when it will happen."

 

Interview via FOX Business Network...

 

On the markets:

“I say you have to look at things simplistically, if you’re really making a lot of money and you hold it and you’re a successful investor you try to reduce to simplicity. And if you look at it simply this market has a lot to be concerned about and people say well ’07 they said nobody was concerned. People knew that the housing bubble was there. They knew it was a great worry and everybody ignored it... I’m not telling you this market is going to crash, going to go down next week, next month, even next year, but you have to be extremely concerned with what’s going on. I mean consumers really aren’t spending – by keeping interest rates this low you are creating bubbles that you don’t even know about. And I do think that sooner or later the Fed can’t just keep this market up by itself.

On whether he thinks this is the beginning of something problematic in the markets:

“I say it’s not just a question of it could be the beginning… It’s not will it happen. It’s when it will happen unless interest rate bubble is I think holding it up and I think the Fed has to be congratulated for what they did to save this economy in ’08. There is no question that the Fed did hold it up there, but I think now the time has come to stop the medicine and I think it will happen. It will stop.”

 

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Mon, 06/01/2015 - 18:04 | 6153297 Panic Mode
Panic Mode's picture

Fiat Ben said it's not his fault.

Mon, 06/01/2015 - 18:42 | 6153419 max2205
max2205's picture

ICANN,  a pump and dumper who should be in jail getting butt fucked three times an hour for 20 years.

 

Fuck you Karl...ass hole 

Mon, 06/01/2015 - 19:40 | 6153587 espirit
espirit's picture

iCahn still is on the list for the guillotine. 

Mon, 06/01/2015 - 22:05 | 6154036 Four chan
Four chan's picture

the evil of the fed manifests itself in several ways the most 
insidious is the brutally punishing way it devalues savings 
through money printing at a rate far exceeding any rate of 
return possible. the fed steals silently. 

the system called federal: 
to enslave a free people to dept, and capture all assets through 
boom and bust, with money printed out of thin air. 

100 years, truly mission accomplished.

Tue, 06/02/2015 - 09:44 | 6155112 mtl4
mtl4's picture

Unfortunately this notion of QE and negative interest rates is like chinese handcuffs, easy to slip on very hard to get off again. Politicians are doomed by the corruption of power iteself into thinking they can smooth out business cycles (by forcing people to do what they want which in this case is to get people spending again).  Problem is it never works and when you burn the candle at both ends there's not much left in a very short period of time.  All they know how to do is write laws which is also why we are headed towards electronic currency as their next tool of choice as they set the house on fire and slam all the exit doors shut.

Mon, 06/01/2015 - 18:05 | 6153305 i_call_you_my_base
i_call_you_my_base's picture

And it wasn't six months ago? A year ago?

Two options: 1) he is now short, or 2) he's trying to talk the market down so that the fed doesn't feel compelled to raise rates.

Icahn is not going to give legitimate advice.

Mon, 06/01/2015 - 20:52 | 6153798 Lost My Shorts
Lost My Shorts's picture

Exactly right.  I-con only talks his book.  So either:

1) it's a classic case of telling you to sell so he can buy; or

2) he is positioned for a rise in interest rates, and is now giving the Fed ass cover for and implicit orders to raise rates.  The Fed doesn't give a shit whether you live or die, but if Karl I-con says go, they go.

Alas, those two possibilities are near opposite in terms of how us small fish should respond.

Mon, 06/01/2015 - 23:20 | 6154231 Groundhog Day
Groundhog Day's picture

wait he just said AAPL is worth 240 a share or nearly 1.5 trillion, but the rest of the market is crap..ok  iCON, thx for the advice...asshole

Mon, 06/01/2015 - 18:08 | 6153316 nakki
nakki's picture

So that's why he wants Tim Cook to buy back all his shares.

Mon, 06/01/2015 - 19:25 | 6153542 Spitzer
Spitzer's picture

Tim Cook is gay

Tue, 06/02/2015 - 22:06 | 6157834 Abbie Normal
Abbie Normal's picture

Does that make Caitlyn a lesbian now?

Mon, 06/01/2015 - 18:08 | 6153320 tdag
tdag's picture

"This market has a lot to be concerned about."

Guy's a fucking prophet.

Mon, 06/01/2015 - 18:08 | 6153322 The Master
The Master's picture

TPTB in Trish Regan's earpiece right when Icahn begins talking about the HY bubble. Classic.

Mon, 06/01/2015 - 18:10 | 6153330 gdiamond22
gdiamond22's picture

Yes nothing like praising the institution for saving a global epidemic that they created in the first place. How perverse.

Mon, 06/01/2015 - 18:33 | 6153392 Oldwood
Oldwood's picture

Exit strategies for the gamblers when the casino catches fire.

If you don't play, they can't win...

Mon, 06/01/2015 - 18:20 | 6153349 Monetas
Monetas's picture

There's no backing down .... on Buy Back Mountain .... there's no talking this beast down .... this is Ponzi Roulette .... keep the QE coming .... keep the buy backs coming .... they don't know how to get out of this mess .... the only reality .... is the blackmail threat .... you won't like the sell off .... very much !

Mon, 06/01/2015 - 18:35 | 6153401 Oldwood
Oldwood's picture

Survival of the masses has never been the goal of a Ponzi. Its about building a big wave with enough inertia to carry you to shore while everyone else below you drowns. Those selling this ponzi will be out and gone before the real shit hits the fan.

Mon, 06/01/2015 - 18:26 | 6153368 kill switch
kill switch's picture

"It's Not If, But When It Will Happen"

 

Howard Ruff told me this in 1979 in an article in the Ruff Time newsletter and I agree it will happen............................................................................................................................As for me call the Neptune society..

Mon, 06/01/2015 - 18:24 | 6153371 Stroke
Stroke's picture

Smelly old fucking piece of shit, ought to be drawn & quarterd with the rest of his fuckin buds

Mon, 06/01/2015 - 18:25 | 6153372 BoPeople
BoPeople's picture

My guess is that they will do everything in their power to make it seem as if any upcoming collapse is not their fault, up to and including dropping a kinetic device (asteroid-ish)off the coast of New York City and wiping out millions of people.

IMO, they would much rather murder millions than admit they screwed everyone intentionally and risk losing power.

Mon, 06/01/2015 - 18:30 | 6153382 Monetas
Monetas's picture

The last card .... is the opposite of negative interest on savings .... they pay you to borrow .... positive loan interest in your favor .... the stick and the carrot .... they penalize hoarding .... and pay you to speculate ?

Mon, 06/01/2015 - 18:39 | 6153408 Dre4dwolf
Dre4dwolf's picture

The problem is not that they penalize or reward you for taking certain actions.

The problem is that they have the power to do either in the first place!

 

When you reward or punish behavior , you have the power to pick and choose winners and losers.

That power belongs to the free market.

When you abuse that power and reward bad behavior (what the Fed has done for the better part of 20 years) you create huge socio-economic and political problems that are very difficult to fix later on.

Mon, 06/01/2015 - 18:58 | 6153460 OC Sure
OC Sure's picture

 

 

Then by a "free market" it is meant that free means "without compulsion" and market means "individuals exchanging values."

Thus a free market is the meeting of individuals exchanging values without compulsion. This is to say voluntarily. 

Begs the question then who has the authority to use compulsion and why? 

The authority rests with a chosen governing body with the purpose to remove an existing compulsion. 

This power then, which does not rest with the free market, has been corrupted to establish and initiate compulsion. 

Mon, 06/01/2015 - 19:22 | 6153533 Monetas
Monetas's picture

Yeah, Carrot and Stick .... on Buy Back Mountain .... they stick you .... with their carrot .... in your rabbit hole !

Mon, 06/01/2015 - 20:07 | 6153652 OC Sure
OC Sure's picture

They control the carrot and the stick because they control the means - compulsion. 

Their means needs to be removed, by compulsion if necessary, by ballots or bullets.

A free market means that the compulsion must be removed. 

The fundamental compulsion is the counterfeiting and the uncollateralized issuance of debt. 

Mon, 06/01/2015 - 20:10 | 6153659 Rearden-Steel
Rearden-Steel's picture

....

Mon, 06/01/2015 - 19:40 | 6153588 trulz4lulz
trulz4lulz's picture

You're paying to watch them win. Burn the bankster!

Mon, 06/01/2015 - 18:32 | 6153386 Consuelo
Consuelo's picture

"it’s not just a question of it could be the beginning... It’s not will it happen. It’s when it will happen."

 

I'm more curious of the trigger event.    Chinese blogs are all atwitter with 'oh let me count the ways' in which they'd like to economically knee-cap the U.S. for telling them what they can or cannot do with their 'sand castles'.   Oh well.   It'll be a Monday AM event when it all comes down I reckon.

Tue, 06/02/2015 - 03:54 | 6154589 biggestbrother
biggestbrother's picture

fortunately the 50c per blog potential 1.3 Billion Chinese armed with google translate do a lousy job in persuading the west. However they do clutter up the blogs. 

Mention South China seas on any blog and the ration of 50Centers to fere western commentators is at least 20 to one. 

Mon, 06/01/2015 - 18:41 | 6153393 Dre4dwolf
Dre4dwolf's picture

what technology does apple have down the pipeline that people are excited about?

Because for the past 10 years, all I see is the same product (iphone) repacked with 1 new feature every revision.

-Bluetooth added years after every other phone had it

-More storage space years after every other phone had almost unlimited storage space

-cloud storage years after every other phone had it

Laptops with 1/2 the specs 1/2 the ram 1/2 the storage space for triple quadruple the price of a normal laptop (they are all INTEL PARTS IN MAC PRODUCTS ANY FUCKING WAY!)

 

A failed product (the apple watch/iwatch w.e u fucking call it ) which came WAY AFTER the Samsung Gear/watch thing which IS BETTER AND ONLY COSTS 45$ vs...unlimted$ with 0% down financing <.<

The apple TV that I doubt anyone will buy, because Samsung makes the best Tvs, everyone knows it and it controls the market without question.

The apple car, I doubt people will buy a re-branded Vw Beetle rip-off for double the price, but . . . who knows? maybe they will

 

So what exactly is all this "new" technology coming down the "pipe-line" that "everyone" is excited about, and who exactly is "everyone"? anyway?

 

The only way Apple will hit 200+$ a share is if the central banks of the world WANT IT TO by propping it up with freshly printed FIAT.

 

SOOOOO

Either he is pushing apple so he can dump it when it rises because "he said so" or  . . . he knows that apples shares are being used to funnel FIAT from central banks to market participants , because the central banks figure "everyone is dumb enough to buy apple shares, make it go up"...

So what is it exactly that he and the central banks are trying to tell us? because I have a hard time trusting anyone when it comes to market tips, especially when they are being broadcast on MSM networks.

Mon, 06/01/2015 - 18:43 | 6153424 Oldwood
Oldwood's picture

God help our economy if people ever start buying based on real value rather than perceived.

Mon, 06/01/2015 - 18:41 | 6153416 CHC
CHC's picture

Icahn is a smart man.  He keeps dancing around it all though - "it" "it'll" "it will" - but never saying what he truly means.

Mon, 06/01/2015 - 22:31 | 6154114 TeethVillage88s
TeethVillage88s's picture

Yeah, there is a bubble or 6 Bubbles of various degrees and we don't even know it is out there.

All Employees: Financial Activities
2015-04: 8,093 Thousands of Persons (+ see more)
Monthly, Seasonally Adjusted, USFIRE,

Stress Index for Securitization is going up.

Contributions to the Cleveland Financial Stress Index: Securitization Market
2015-05-29: 17.56 Units of Stress (+ see more)
Daily, Not Seasonally Adjusted, SMRKTD678FRBCLE,

Student Loans Owned and Securitized, Outstanding
2015:Q1: 1,355.0134 Billions of Dollars (+ see more)
Quarterly, End of Period, Not Seasonally Adjusted, SLOAS,

And we know why the Reserve Balance Sheet is high, but no one is WILLING TO WORK the Problem.

All Federal Reserve Banks - Total Assets, Eliminations from Consolidation
2015-05-27: 4,463,981 Millions of Dollars (+ see more)
Weekly, As of Wednesday, Not Seasonally Adjusted, WALCL,

http://research.stlouisfed.org/fred2/series/PRIME

Effective Federal Funds Rate
2015-05: 0.12 Percent (well never see 1969 again at 9.2%)
Monthly, Not Seasonally Adjusted, FEDFUNDS
http://research.stlouisfed.org/fred2/series/FEDFUNDS

Mon, 06/01/2015 - 18:41 | 6153417 thepigman
Mon, 06/01/2015 - 18:53 | 6153452 reTARD
reTARD's picture

Not to mention shit software. Their hardware use to be quality stuff, but their new hardware gets worse with every model remake. Not to worry, their Macheads will still buy and will never see any wrong with Apple.

Mon, 06/01/2015 - 19:38 | 6153577 Stormtrooper
Stormtrooper's picture

Whatever did happen to that I-Watch thingy anyhow?  I thought that they would show up at Goodwill stores by now.

Mon, 06/01/2015 - 18:51 | 6153444 spanish inquisition
spanish inquisition's picture

Icahn - "I am in the process of aquiring a shitload of options that I don't want to expire out of the money. It's time to raise rates or do I need to blow someone first"

Mon, 06/01/2015 - 20:23 | 6153536 Intellikon
Intellikon's picture

Carl is talking his own risk.

Not only are we in uncharted fed policy territory, he knows that the smart and large buy/hold crowd exited the broad market long ago.. and he's old enough to remember the last 3 market blood baths.

Yes Carl knows it will all blow up again... but he's still obligated to his fund to be in the game, so here come the excuses in advance... same as Grantham talking his own risk on Charlie Rose last year.

Mon, 06/01/2015 - 19:29 | 6153544 x-moose
x-moose's picture

I was always wondering: what was the point of making them stitch that thing to their clothes when any passing glance is sufficient to spot the chosen tribe?

Mon, 06/01/2015 - 20:08 | 6153654 GRDguy
GRDguy's picture

Just another front (agent) for The Great Red Dragon (Snakes In Suits). As an old guy, I remember what he did to TWA back in the mid-80s.  What gets me is that nobody ever checks to see where the guy gets his play-money.  That's where the Dragon comes in.  Always looking for a sucker to do their dirty work.  Of course, they're well-paid and well-publicized; and that keeps the heat off the REAL snakes.

Mon, 06/01/2015 - 20:12 | 6153667 scatha
scatha's picture

An anchor found herself at the end of bubble cycle of business propaganda after years in surely rewarding job of distracting investors from truth and right choices with her seasoned but shapely body. And now she hit almost the end of career set by her old NBC mentor descending into abyss of ignorance at FOXB. ANd few thought it was ever possible. Countless billions of $ have been lost by strait investors looking at her bottom instead of their bottom line but that comes to the end. Sadly nobody, strait or gay is looking no more, exhausting from orgasmic thrust of DOW and S&P fetish administered by FED mama.

This cycle is over.

CNBC--> BLOOMBERG-->FOXBUSINESS-->TRASH;

 

Mon, 06/01/2015 - 22:43 | 6154151 BeerMe
BeerMe's picture

The whole notion that the Fed saved the economy in 08 is complete bullshit.  The Fed's meddling is the reason the economy has never recovered and still sucks.  The Fed...destroying and pumping bubbles since 1913.

Tue, 06/02/2015 - 01:22 | 6154459 RKDS
RKDS's picture

Icahn is a parasite.

Tue, 06/02/2015 - 03:46 | 6154578 biggestbrother
biggestbrother's picture

Yes Carl. It has to stop. 

 

 

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