Market "Earthquake Is Coming" - Icahn Warns "A Lot Of People Will Pay The Price Like In 1929"

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."

CNBC, of course, was careful to provide some cover for their advertisers, noting that while Icahn said "this casino is on steroids -- the market is a casino on steroids," they add that the veteran market-watcher said, this is not "the explosive time."

Comments

TheEndIsNear Rick Cerone Tue, 02/06/2018 - 22:05 Permalink

Rick Cerone said: "Unlike 1929, most of us know whose responsible."

Hardly.  A vanishingly small percentage of the insouciant US population have any awareness whatsoever of the Fed or its evil  ways because most people get their news from TV.  Reading, and for the most part being able to understand the issues discussed on ZH and perhaps a few other places, is an avocation of exceedingly few.  If you don't believe me, try mentioning almost anything presented on ZH to a friend or neighbor. They will be clueless.

In reply to by Rick Cerone

MK ULTRA Alpha shizzledizzle Tue, 02/06/2018 - 13:56 Permalink

Greenspan, Katz and Yellen signaled the Jews, they ran for the exit and spooked the herd into a panic. Now we have another Jew who stole companies pensions as a corporate raider telling us, the markets are worse then 1929.

There will be more Jewish sell off, until it destroys the economy. We were coming together and getting our act together, the Jews can't have that, we must always be in a constant fear and confusion. Thank you, Jews.

In reply to by shizzledizzle

itstippy MK ULTRA Alpha Tue, 02/06/2018 - 14:39 Permalink

You are an idiot.  Please post your insane ideas on one of the many political threads Tyler puts up for guys like you. 

The economic junkies on ZH have waited a long time for some threads on economic matters, and don't appreciate clueless fucks like you cluttering up the discussion with endless crap about how powerful, entrenched people are going to crash the very system they built just to spite Donald Trump and his supporters.

In reply to by MK ULTRA Alpha

MK ULTRA Alpha itstippy Tue, 02/06/2018 - 15:32 Permalink

LOL what you've written proves you're an idiot. The Jews built the system so they wouldn't tear it down? Buddy, the Jews didn't build this system and they have a pattern of destruction, economic destruction that is moving wealth and power into fewer and fewer hands, Jewish hands.

Lets face it, you're Zionist apologist who is brainwashed to parrot his programming. There are too many Americans who are awake, they know.  We've seen the same pattern over and over.

In reply to by itstippy

MK ULTRA Alpha itstippy Tue, 02/06/2018 - 15:54 Permalink

LOL we're not allowed to give a critical assessment of Jewish manipulation of the stock market after months of keep buying and then an ABRUPT CHANGE WAS SIGNALED.

We are not allowed to debate this in your sick brainwashed mind? We can't say, key Jews who run the Fed were saying get out. To WHO?

What we have right now are Jews on the board trying to cover. But there are too many who believe what I believe and we have COMPARED NOTES FOR YEARS NOW.

Thank God for the internet because we can now see what the Jews have done to us, who are not Israelites as you have been BRAINWASHED TO PARROT. But jerks like you believed the lies and placed them above us and look what they have done over and over, rolled the economy over and over.

How old are you?

These people are the Eastern European Khazar gypsies. It's in their DNA and history. AND Israeli genetic scientist have PUBLISHED RESEARCH that 40% of the Jewish population is inbred and have the schizophrenia gene and will go nuts as they age. We've seen it over and over and compared notes.

YOU CAN'T CHANGE WHAT WE KNOW NOW.

In reply to by itstippy

MK ULTRA Alpha itstippy Tue, 02/06/2018 - 16:10 Permalink

It's tooo funny the ziobot freak was a machinist union factory worker according to his bio, he blames everything on foreign workers for him losing his job. He says he was forced out.

 

WHAT'S FUNNY, THE JEW PUMPING 1929, WAS A CORPORATE RAIDER THAT DESTROYED WORKER PENSIONS. But the jack ass, doesn't even know that history.

We've got one here, a brainwashed apologist who is so ignorant, the TV was his education, blue collar ignorant parroting his programming.

He's such a coward he is AFRAID TO THINK OUTSIDE THE PARAMETERS OF HIS PROGRAMMING. THAT'S the sign of a momma boy.

In reply to by itstippy

eclectic syncretist Meyer Blinder Tue, 02/06/2018 - 14:05 Permalink

This market has churned about four times the average volume of shares traded already today and it's still going down. That means fair value is most likely a lot lower. If things can get stabilized and back to "normal" for a day or so it might try to make a run back to the highs, but for right now it looks like it's more a question of how fast is it going to drop.

In reply to by Meyer Blinder

TeethVillage88s Liberaldisdain Tue, 02/06/2018 - 14:27 Permalink

Problem?  Too many players or too much money in USA, US Financial Markets, US Debt, US Treasuries?

 "This is a manifestation of a real deep problem we have in our markets."

- Maybe there needs to be reasonable limits for the little kids who want to play, $34 Trillion in Foreign Ownership in the USA with wide open Investment opportunities, Citizens pushed out of the Mortgage Market, Citizens Pushed Out of the Financial Markets too?

US Treasuries China 2002 = $95 B, then 2013 = $1,272 B, December 2014= $1244 B
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm (Foreign Ownership in the USA)

 

In reply to by Liberaldisdain

Cosmicserpent Tue, 02/06/2018 - 13:53 Permalink

Blah blah blah. "Market is going to crash, 5 months or 5 years and long run it'll all be good."  My fucking cat made the same prediction.

ZH has become such a worthless piece of doom porn dung infested pustule.  Used to be you could actually get some valid info on here.

Hey fuck off!!