Carl Icahn …… danger ahead [VIDEO]

0:00I am concerned about that’s a major bubble but I will say too short it
0:09tomorrow this market keeps going up and up with zero interest rates and that’s
0:15what’s really pushing it sounds like you’re saying this could be the
0:18beginning of something problematic I think that will it happen it’s when it
0:24will happen there’s one investor out there that a lot of CEOs just hafta take
0:32the phone call from because when you get a call from this guy carl icahn he
0:35probably wants to shake things up a little bit giving his thoughts on stocks
0:39broadly I believe the market is extremely overheated also if more
0:44respected investors had warned about the market in 2007 we might have avoided the
0:49crisis in 2008 overall the dus equity market do you think it’s in store for a
0:55dramatic pullback I’ve been worried for the list five six months about the
1:01market and the economy canada dangerous but that we did speak four or five times
1:07wanting about the problems we have I want to speak out now
1:13because I know this may sound corny but I grew up in the streets of Queens I
1:17loved his country and I feel so strongly about the dysfunction that is going on
1:23both in washington and
1:26boardrooms of corporate America
1:38over the years the risk of being modest I probably have one of the best records
1:43on wall street working on broken companies or companies with great
1:47potential and just have problems many times in management what management is
1:52doing and I countries in that position right now
1:57Congress currently in a nail-biting three-way tie for least popular branch
2:02of government and just look at her record thirty years no tax revolt 30
2:08years no immigration as a result you have this movement toward a guy like
2:12that because you want somebody that’s not behold two an establishment so we
2:18need president that can move congress and I think donald Trump could do it I
2:23disagree with him on certain issues and certainly would talk to a more but this
2:27is what this country needs somebody to wake it up one obvious problem the
2:32government should have fixed a long time ago is the carried interest tax loophole
2:37people and was really good friends of mine I like him but not having to pay
2:43full taxes on money the journey is an absurdity I would take carried interest
2:50and I would let people that are making hundreds of millions of dollars year pay
2:54some tax because right now they’re paying very little tax and I think it’s
2:57outrageous to go to raise taxes on your cell teddy roosevelt was great he stood
3:02up to JPMorgan and we did we get a guy like that again
3:05Donald baby’s breath but is willing to say what he believes in willing to say
3:11hey this is complete bullshit the middle class guy who’s making the 50,000 you
3:16realize I’m being taken advantage of you can read you can understand you know in
3:19Tsarist Russia had to have a revolution and as I would bring out the machine
3:23guns ammo and down all these guys have to do is vote so we need government to
3:29get out of this gridlock to get out of this dysfunction a quintessential
3:33example is repatriation which to translate means that is true point two
3:40trillion dollars in profits that american companies have already hit Asia
3:45South America and Europe companies domiciled in this country but make goods
3:53in another country producing and selling liquor nothing to do with the united
3:58states that money is sitting there and the companies would bring it back but it
4:03is completely totally unfair the companies say and rightly so that they
4:08have to pay a double tax they make the widgets over there they sell them over
4:12there why should they have to pay a double tax with no other country demands
4:17that from their companies except the United States a country should itself in
4:22the foot because he’s companies its able without are bringing back then so they
4:26punishing to punish the little guy again because of that money came back it would
4:31make for jobs that money doesn’t go two matches that money is given to somebody
4:35who’s and will invest in somewhere else in this country and help to create more
4:40jobs as opposed to take you the money over in Europe and invested in Ireland
4:45or somewhere like that it’s absurd not to make a deal and these companies are
4:50willing to pay a tax and everybody agrees that it should be done is just
4:54having a food fight over it’s almost funny if it wasn’t so serious
4:58who’s gonna get the credit for it you know
5:01gonna be republicans that put their foot down and say we should take you back all
5:08the democrats have won 15 percent to take that money back so the holdings of
5:13service and worship true and versions which I call inversions been a lot of
5:18companies and say hey you know what we’re gonna get out of this country
5:21completely we don’t need to be here they make most of their equipment and make
5:25the widgets make before whatever they do in another country why should they be
5:30here at all and the same type of short-term thinking that’s happening
5:36with the government is happening in corporate America today the irony of
5:40lower interest rates is that companies today instead of taking the money that
5:46they can borrow and really a lot of capital new machinery new equipment in
5:50their workers to make them more productive what they do with the money
5:54is almost perverse they just go in and buy another company to show the analysts
5:59on wall street there are going up so the stock will go up and its financial
6:03engineering at its height the earnings that are being put out today I think
6:12they’re very suspect the guidance to giving doesn’t talk about stock
6:16compensation they ignore restructuring course they don’t advertise intangible
6:21assets they ignore the cost of taking over another company we sell the city
6:26she is like taking the drug you know borrow money very cheaply taking over
6:32another company you feel good like steroids you know the athletes jump in
6:36pretty high and so those companies they can show a huge even a number that we
6:41all know is that gonna be there in 23 is look I know this stuff I’ve taken over
6:45companies I understand the way of it so these earnings are fallacious and
6:51another reason the fallacious is a lot of companies that are doing buybacks
6:56shouldn’t be doing it when you start doing those buybacks what it does its
7:00short-term fixed but it weakens the balance sheet now I am a proponent for
7:07buybacks and companies like apple with a city in the 200 billion in
7:11cash and not a lot of debt they should do buybacks especially an apple with its
7:16stock is nine times earnings but you have companies today
7:19music companies I should selling at thirty times earnings 28 uncertainties
7:24and have no net worth because they keep buying back stock yet analysts look at
7:31quarter-to-quarter if you earlier according to the stock closed up and up
7:34and now love to see those who just want to just see quarter to quarter earnings
7:39see the stock up and yet you really do gap which is a tougher rhetoric you
7:47haven’t really increase service for three years
7:49GAAP earnings they’ve stated about $100 shipped after three years and even GAAP
7:54earnings the suspect which means we’re paying huge multiple but what

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