Billionaire Carl Icahn Predicts a Recession or Worse — Says ‘There’s No Accountability in Corporate America’

Billionaire Carl Icahn, the founding father of Icahn Enterprises, has predicted that the U.S. financial system could possibly be heading into “a recession and even worse.” The well-known investor warned of “lots of hassle forward” and “a tough touchdown.”

Billionaire Carl Icahn Predicts a Recession within the US

Famous investor and billionaire Carl Icahn stated Tuesday in an interview with CNBC {that a} recession or one thing worse could possibly be on the horizon for the U.S. financial system. Icahn is the founding father of Icahn Enterprises, a public firm and diversified conglomerate holding firm primarily based in New York City. His present internet value is roughly $17 billion.

Noting that surging inflation is a significant risk to the financial system, he stated:

I believe there very effectively could possibly be a recession and even worse.

He defined that primarily based on his expertise sitting on the boards of lots of corporations, “while you get to know what these boards do, the system is needing fixing.” He additionally famous that at this level, “now we have provide chain issues” as a result of “our corporations are so badly run.”

Icahn opined:

There’s no accountability in company America. You have some very nice corporations with some very nice CEOs, however far too many that aren’t as much as the duty that I believe goes to be necessitated.

He proceeded to share his investing technique. “I’ve saved the whole lot hedged for the previous couple of years and I believe now that we do have it, now we have a robust hedge towards the lengthy positions that we attempt to be activists in and get that edge. So that’s the way in which I take a look at it, however I’m unfavourable as you’ll be able to hear. Short time period, I don’t even predict,” he detailed.

The Icahn Enterprises founder was then requested if he believes there can be a mushy touchdown. “I actually don’t know in the event that they [the Fed] can engineer a mushy touchdown or not, however … I believe we do have lots of hassle forward … I believe there’s going to be a tough touchdown,” he replied, elaborating:

Inflation is a horrible factor when it will get going. You can’t get that genie again within the bottle too simply. We noticed it within the 70s, we noticed what occurred.

“In the final 20 or 30 years … You had low cost items coming in from the Far East, from China, for certain, and even from Russia … I believe these days are over now, and you’ve got this [Russia-Ukraine] conflict occurring now which provides one other drawback to your inflationary image,” the billionaire famous.

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