Billionaire Carl Icahn, the founder of Icahn Enterprises, has predicted that the US economy is headed for “a recession or worse”. The famed investor warned of “a lot of trouble ahead” and “a rough landing”.
Billionaire Carl Icahn predicts US recession
Famed investor and billionaire Carl Icahn said in an interview with CNBC on Tuesday that a recession or something worse could be on the horizon for the US economy. Icahn is the founder of Icahn Enterprises, a public company and diversified conglomerate holding company in New York City. His current net worth is approximately $17 billion.
Noting that rising inflation is a major threat to the economy, he said:
I think there very well could be a recession or even worse.
He explained that based on his experience in the management of many companies, “if you understand what these boards do, the system needs to be fixed.” He also noted that at the moment “we are having supply chain problems” because “our companies are so badly run”.
There is no responsibility in corporate America. You have some very good companies with some very good CEOs, but way too many who are not up to the task I think will be required.
He went on to share his investment strategy. “I’ve covered everything for the past few years and I think now that we have it, we have a strong hedge against the long positions where we’re trying to be activists and get that edge. So that’s how I look at it, but I’m negative like you Short term, I can’t even predict that,” he explained.
The founder of Icahn Enterprises was then asked if he believes there will be a soft landing. “I really don’t know if she… [the Fed] may make a soft landing or not, but… I think we have a lot of trouble ahead of us… I think there will be a rough landing,” he replied, elaborating:
Inflation is a terrible thing when it gets going. You don’t get that genie back in the bottle that easily. We saw it in the 70’s, we saw what happened.
“Over the past 20 or 30 years… Cheap goods came in from the Far East, certainly from China, and even from Russia… I think those days are over now, and you have this [Russia-Ukraine] there is a war going on right now that adds another problem to your inflationary picture,” noted the billionaire.
What do you think of Carl Icahn’s comments? Let us know in the comments below.
Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.
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