The kid who started in as a stock broker at twenty-five ended up with close to the largest number of take-overs and buy-outs in capital city of finance by the time he was pushing seventy-nine years old!
Icahn began watching the market very carefully five or six months ago. He concluded then that there was concern that there would be sharply falling averages in the stock market in very near future.
The fault was gross mismanagement of the economy by Washington and by the managements in industry, and they had been at it for many, many years!
According to Icahn, the people who had the power in Washington and in industry should have taken steps in 2007, the last major fall off in stock prices that ended up producing the recession of 2008.
Had Washington and industry leaders taken the appropriate action to clean up the mismanagement, we would not be in the mess we are today.
But now, in late 2015, the leaders in Washington and in Wall Street can no longer fix what is wrong. We are facing head on a grand recession!
The one hope we have is one of the contenders to the Republican nomination for president, Donald Trump. He is a businessman who is far away from the crazy Washington beat, and he is very outspoken.
Trump should be able to do what amounts to a miracle to save the economy, that is if he makes it to the White House!
Icahn said that there are a number of critical issues that are all playing together to cause a sudden and disasterous drop in the markets and therefore in the economic well being of the United States.
The first of many items is the United States policy of double taxation of profits for U.S. based companies that have goine overseas to increase their profits. Presently, there are 22 trillion dollars in the overseas markets control by them.
Company management would gladly pay tax liability in the foreign markets But they refuse to bring home the same profits to have them taxed here also. This is clearly an injustice for these companies. No other country has the double taxation rules like ours.
Consequently, instead of bring the money home to the U.S. and rebuilding our depleted industries and paying American workers a 2015 wage for their work, the companies just buy out firms in the overseas country.
Hence, the money stays in the foreign country’s market and does not return to the U.S., where is would have done a lot of good. Double taxation, the cause of the problem, must be corrected.
Listen to the entire recording. It covers many topics related to the ones given here. The recording is excellent!