BACK WITH CARL ICAHN RIGHT NOW.
ALL THESE FEDERAL RESERVE GUYS
IN THE MIDDLE OF THIS UNWINDING
OF INTEREST RATES EXTREMELY LOW
CLOSE TO A DECADE.
AN INTERVIEW REFERRING TO BY
DEFINITION.
YOU CAN'T JUST KEEP RENTING OUT
IN A SOCIETY.
SOONER OR LATER THEY HAVE TO
COME HOME TO ROOST.
ARE WE AT THAT PHASE RIGHT NOW?
>> YEAH, LOOK.
I DON'T KNOW IF IT'S RIGHT NOW,
BUT IN MY OWN PORTFOLIOS WHAT
I'VE ALWAYS DONE IS KEEP THEM
ATTACHED.
SO I'M NOT REALLY PLAY IN THE
MARKET.
SOMETIMES MORE HEDGE, SOMETIMES
LESS.
AND UNLESS YOU'RE NOT HAVE BEEN
COMPLETELY HEDGED.
NEIL: YOU ARE BUFFERING YOURSELF
FROM JUST IN CASE.
>> IT DOESN'T REALLY MATTER TOO
MUCH TO ME WHAT THE MARKET DOES.
IN OTHER WORDS, FOR EXAMPLE, THE
OIL COMPANY, YOU KNOW, AS AN
ACTIVIST WANTED THEM TO DO A
DEAL AND WHAT HAVE YOU.
WHAT I DID THROUGHOUT THAT IS SO
THE INDEX AGAINST IT SO IT
DIDN'T MATTER WHAT OIL PRICES
DID.
THAT'S WHAT I DO AND NOW I'VE
DONE IT AT A HIGH%, ALMOST 100%
HEDGED.
BUT I DON'T KNOW WHAT THE
MARKETS GOING TO DO.
NOBODY DOES.
NEIL: BUT THERE'S A LOT OF
PEOPLE NOTICING ALL THESE
THOUSAND POINT SWING SAYING
SOMETHING IS GOING ON HERE
THAT'S NOT TYPICAL.
>> I AGREE.
SOONER OR LATER THERE'S GOING TO
BE A DAY AND I'M 90% SURE WHEN
WE DO HIT A WALL BECAUSE THE
FEDERAL RESERVE JUST KEEPS
GIVING HIS SON MONEY.
YOU CAN'T KEEP DOING THAT.
WHAT YOU JUST SAID ABOUT THE FED
IS NOT JUST THE INTEREST RATES,
BUT THEY HAVE TO UNWIND THEIR
BALANCE SHEET.
OR AT LEAST NOT KEEP POURING THE
MONEY IN.
AND THEN YOU LOOK AT THAT AND
YOU LOOK AT THE DEBT IN THIS
COUNTRY.
85, 90% OF THE COUNTRY KEEPS
TALKING ABOUT CONSUMER WEALTH.
SO SOONER OR LATER THEY'RE GOING
TO STOP HIRING THEM PAY IT BACK.
SOONER OR LATER IF WE DON'T DO
SOMETHING PRETTY DRASTIC, WERE
GOING TO HIT A WALL.
THEY HAD A WALL WITH A 20% MOVE.
THERE'S GOING TO BE MORE OF THE
WAL HIT I THINK.
NEIL: IS THAT ISSUE AS BAD AS IT
WAS A DECADE AGO?
>> IT IS WORSE I THINK.
I'VE BEEN TELLING YOU
$250 TRILLION A DECADE AGO I'M
NOT AN ECONOMIST, GEAR UP TO
$250 TRILLION.
>> EITHER THE CORPORATE BALANCE
SHEETS ARE BETTER.
YOU'RE NOT BUYING THAT.
>> BOOK, THE CORPORATIONS HAVE
MADE ANOTHER MISTAKE TO SOME
EXTENT.
AN ACTIVIST BUYBACK IN CERTAIN
CASES LIKE APPLE.
BUT WE DON'T SAY THAT ABOUT
EVERY COMPANY.
INSTEAD OF USING MONEY TO BUILD
PRODUCT TO THE WIN OUT IN BROAD
STOCK BACK IN SOME PLACES AT THE
WRONG TIME.
CORPORATE DEBT IS PRETTY HIGH
AND THAT'S COMING DUE.
YOU DON'T HAVE THE FOREST
IMPRESSION THAT ALL THESE GUYS
HAVE SO MUCH MONEY NOW.
I DON'T THINK MANY OF THEM DO.
LOOKING AT SOME OF THE ECONOMY,
YOU CAN ARGUE EITHER WAY.
THAT DOESN'T MEAN THIS CAN'T RUN
15% BACKUP.
I REALLY SPEND MORE TIME
THINKING ABOUT WHAT COMPANIES TO
LOOK AT AND MUCH MORE TIME THAN
DECIDING WHAT THE MARKETS GOING
TO DO BECAUSE THE PUNDITS WILL
TELL YOU WHAT THE MARKETS ARE
GOING TO DO.