Thread: Icahn: Economy, Stocks in Danger

Icahn: Economy, Stocks in Danger

Thursday, October 15, 2009 9:10 AM

By: Dan Weil

Legendary investor Carl Icahn there is great risk of a double-dip recession, a scenario that wouldn’t be pretty for financial markets.

"If you get a double-dip recession, and they start coming down, it's going to be a bit of a bloodbath," he told CNBC.

"The amateur investor is going to get hit badly again, because they're pouring money into these funds. Some of these funds managers I do not think are experienced enough to handle some of the distressed stuff they're buying, and they're going to get burned."

As for financial markets, "I think that you have to be cautious,â€

Consumers are afraid to spend with unemployment on the rise, he said. And that’s helping to keep the economy weak.

I find it strange that the experts say that in order to keep the economy strong, we have to keep the big debt machine rolling. If people aren't spending their money and they are saving it..wouldn't that strengthen the dollar? If everyone spends their money, more jobs for people who live outside of their means will be created and the debt machine rolls faster..down hill.