Carl Icahn Predicts “Day of Reckoning” For Financial Sector

Carl Icahn does not shy away from sharing his opinion with the rest of the world. A lot of people pay close attention to what he says, particularly when it relates to finance. An earlier statement leads many people to believe a new financial recession will be coming sooner or later. In fact, Icahn seems to be more hedged than ever before.

Financial Markets Are Way Overvalued Right Now

Although most people have known this for a long time, it is always good to see a public figure such as Carl Icahn voice concerns over the financial system. The financial world as we know it is coming to an end sooner or later, A lot of people are hedging right now to prepare for the worst, although there is no telling when the next crisis may hit.

In a recent interview between Carl Icahn and Bloomberg, he talked about his personal financial situation. To be more precise, he is “more hedged than ever before” But that is not the statement that will have a lot of people talking in the coming months. He also mentioned how money is not going into capital, which is a very worrisome trend.


Furthermore, Icahn also stated how the market is “way overvalued due to zero interest rates”. These zero interest rates are creating the illusion of a financial recovery, even though that is not what is happening by any means. At the same time, it allows banks to issue even more IOUs on a global scale, and there is no one undertaking any action against it.

While some fiat currencies are showing a bullish trend, that positive effect will have negative repercussions in the long run. A strong Dollar or Yen, for example, will hurt international earnings. Unless there is an increase in capital spending, the situation will not improve anytime soon, and push us closer to what Icahn calls “a day of reckoning”.

It is evident for everyone to see some changes will need to be made to the financial system in the coming years. That is, assuming we will have a few more years until this day of reckoning arrives. Exciting things are ahead for the financial sector, and change is inevitable. It will be interesting to see what this all means for the future of alternative financial systems, such as Bitcoin.

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