Billionaire Carl Icahn warns of 'danger ahead' for US economy - USA TODAY

"It's like steroids," he explained involving the increase within acquisitions.

In July, Trump toldMSNBC'sMorning Joetelevision reveal that he would "love to always be able to carry my friend Carl Icahn" in as head in the U.S. Treasury. Lending standards have got since been tightened, yet Icahn said he even now fears in which historically low interest rates, which now hover near zero, are usually creating asset bubbles in other areas, such as high-yield bonds.

"I don't consider one other guys understand the major problems we face," Icahn stated of of presidential contenders. He mentioned your merger boom will be contributing to false growth by simply companies. Trump in add-on has said he would recruit Icahn to end up being able to negotiate using China.. "Iwant to see this dysfunctionobliterated and which we get stuff carried out throughout Congress," stated the actual billionaire,known with regard to pushing his agenda most importantly publicly traded companies, includingApple, Yahoo as well as Motorola.

Here's any set of some of Icahn's best economicconcerns:

*M&A bubble: Icahn stated the increase ofjunk bonds is adding to anartificialmerger boom. I hate to determine it go on the tubes andthat's what's kind of happening. Some Other economists get called pertaining to corporate taxes to be lowered a lot more permanently.

In a rare transfer even to have an investor consequently accustomed for the public spotlight your founder as well as chairman associated with $8.5 billion Icahn Enterprises features produced a new video warning of "danger ahead' for your U.S. Companies are utilizing the bucks they've got raised through junk bonds to get companies they could not in any kind of other case afford, he said. "Igrewup about the streets in Queens (N.Y.). Ireally believe it."

In an interview using USA TODAY, Icahn stated he made the video in order to highlight the particular "dysfunction" within corporate America as well as on Capitol Hill. In case they were taxed with ordinary income, that they would have in order to spend up to39.6%.

Follow USA TODAY enterprise reporter Kaja Whitehouse in Twitter @kajawhitehouse

Read or even Talk About this story:

Icahn has mentioned he he cannot be Trump's Treasury secretary because he provides "a day job." Yet he informed USA TODAY he's open tohelping Trump inside some other ways if Trump wins the actual White house in 2016."I'd become happy to assist him inside in whatever way Icould," Icahn said."I'm believed of as a good negotiator."

CNBC's Scott Wapner moderates your Alpha Debate: Activism panel with Carl Icahn, Chairman, Icahn Enterprises in the 5th annual CNBC Institutional Investor Delivering Alpha Conference about Wednesday, July 15, 2015(Photo: Heidi Gutman, CNBC)

NEW YORK Billionaire investor Carl Icahn could have got said zero for you to becoming Donald Trump's Treasury secretary, but he's not ready to give up the particular nationalstage.

*Corporate taxes tend to be as well high: Icahn sayshe desires Congress figure out a way to incentive companies to restore your $2.2 trillion inside cash these people haveoverseas.It's a concern several policymakers possess argued might be dealt withthrougha tax holiday.Such a holiday wouldforgive both just about all or possibly a portion involving $770 billion inside taxes that might preferably be owed and also advantage the slew of tech companies, which includes Apple one of Icahn's largest investments. We're losing our hegemony. "The middle-class investorhasnowhere to select their cash but to the (stock) market, or a lot more concerning, high-yield bonds, which usually are very risky," Icahn said in the video, which could be posted on his website

*Hedge fund managers don't pay adequate throughout taxes: Icahn stated he agrees together with Trump which Congress should near a new tax loophole that allows hedge fund managers and other skilled investors to reap your benefits of lower tax rates on earnings.Under your existing system, hedge fund managers find paid the part involving profits that they earnfor clients, which are taxed as richesse gains, as well as around 23.8%. economy that furthermore advocatesTrump because the greatest candidate to fix the particular nation'sproblems.

Icahnsaid he thinks Trump which he sparred along with inside 2010 over a new casinois the particular very best candidate to repair your dysfunction.

In the particular 15-minute video, Icahn callsfor taxes being lowered for corporations and also raised pertaining to hedge fund managers.He in addition reiterates his previouswarningthat interest rates hoovering near to zero are usually creating investment bubbles in real estate, art, corporate earningsand high-yield bonds.

*Interest prices are generally also low: Icahn stated he agrees withcritics who've tied themortgage meltdown regarding 2008 to the reduced interest rates that proceeded it. Inever could happen to become able to be this successful within any other nation inside the world

Write a comment

Comments: 0