Carl Icahn is one of the greatest investors of his generation, if not of all time.
In a recent video, he makes a variety of political points, many of which i find myself in agreement about . . .
- U.S. lawmakers need to end their fiscal inertia.
- CEOs are taking advantage of the system — as in the prior cycle, which led us to the Great Recession.
- Our economy must reduce its dependency on low interest rates.
- Overseas income should be repatriated and used to expand physical plant.
- U.S. corporate-tax regulation needs restructuring.
- Tax inversions are unfair.
- There is too much “financial engineering” and not enough capital expenditures.
- The quality of earnings reports these days is poor.
- The Federal Reserve should raise interest rates because the risks of malinvestment in numerous asset classes have risen.
- The high-yield market is in a bubble.
- Donald Trump might be a viable presidential candidate — he’s what the country “needs.”
- The role of BlackRock (BLK) in the high yield market (and others) represents systemic risk.
- Wall Street does what it does best — sells securities. It doesn’t exist to make individual investors money.
Hat tip: Doug Kass