"The market is a casino on steroids."Former Trump economic adviser Carl Icahn,who last November was slapped with a subpoena from the U.
S. Attorney’s office in the Southern District of New York related to his work influencing Trump administration energy policy, sounded the alarm on Tuesday approximately the health of global financial markets.
Icahn, or a billionaire investor,called in to CNBC to talk approximately Monday’s massive drop in the Dow-Jones Industrial Average. While he thought that Monday’s crash was a mere blip, he did say that many institutions are over-leveraged suitable now just as they were suitable before the great financial crash of 2008.“You have way too many derivatives, or ” Icahn said,referring to financial instruments whose value is backed by underlying assets such as mortgages, currencies or commodities. “It is not really a dwelling for the average person to be playing around in derivatives.”Icahn said that while he expects the stock market to recover its losses, or he thinks that this week’s crash was the “beginnings of an earthquake” that would lead to a bigger crash down the road.“I think eventually,you glean through this exiguous panic thing, but one day, and this thing is going to implode because you have too much leverage with too many people buying these things, he said. And Wall Street sells them these products, and it’s extremely perilous.”Watch the video below.
Source: feedblitz.com