Carl Icahn: The Fed Can't Keep Printing Money

this is a movie that you've seen before you've seen it several times before carl how does the movie end it doesn't end happily and i've seen god knows how many bear markets and it is similar in one way it's it's a sad thing and a lot of people lose a great deal of capital and i am not predicting though eric i'm not predicting that we're in a bear market i'm not predicting that this is going to end i saw this euphoric atmosphere but i am predicting this that and it's not much of a prediction i guess but sooner or later a situation like this is going to end relatively badly some less badly some more but you can't keep printing up money and printing it up and printing it up because you get what you have now that you can't control the government can't control inflation it it it controls it only uh what they're doing what volca had to do you know bring interest rates up to 18 i remember those days it was unbelievable so i think that's going to happen but i'm not here to discuss i'm not a macroeconomic guru and uh i i just look at simple facts that's what that's all i do simple facts and the simple fact here is is the tension between inflation and printed up money can't continue to exist for that business you say carl that you're not predicting a bear market but this is going to end in an ugly way what's the difference okay well i'm not predicting a near-term bear market nobody can predict what's going to happen next week next month maybe even next year or two you can't you really can't predict that too many variables too many variables the whole political scene the whole question of the presidency but on a big picture methodology you can look at it and say it's simple you can't i think it's economics 101 in high school you you can't just keep pushing out money you can't just keep giving away money and giving away money giving away money because that money will definitely lose its worth like anything else if you make too many widgets then the widgets lose they were so here's what's happening we keep putting out money putting out money putting out money the fed keeps pushing it out there and that's great for a while i mean that's great it's it's like makes you happy but and and at times it's certainly needed but now you can't that party has to stop and sooner or later what's going to happen is you just and you're having it already now the manifestations of it is rampant inflation and and it's not there yet but it has to be controlled and it's not something that you could wait to see if it happens because i've seen that in the past you wait and you wait too long maybe but i'm not here to say defense doing a bad job in fact i think the vet has done a pretty good job over the last few years it's sort of saving the economy so uh that's not the issue but the issue is uh if you're asking me to predict something i'm always saying and it's not saying very much i guess that over the next three four years or maybe a lot sooner you are going to see this whole thing hit the wall in one way or another and it's not going to be a pretty outcome

Channel: Bloomberg Markets and Finance

Views: 100,749

Keywords: Bloomberg

Id: WWqZ3O8Zpxw

Length: 3min 29sec (209 seconds)

Published: Wed Feb 16 2022

Reddit Comments

[u/eightzap10]

*The Fed can't keep printing money. Heck, FRN is not money to begin with!