CARL ICAHN WARNS: The red-hot stock market is being supported by an

However, the warnings from Icahn have been getting louder.

To be sure, Icahn stands to benefit from a few of his recommendations, especially his call for lawmakers to lower taxes for corporations.

Donald Trump might be a viable presidential candidate – he’s what the country “needs”.

Carl Icahn sees danger ahead.

For most skeptics, the preferred measure of earnings is GAAP earnings.

Icahn, a Wall Street veteran who made his fortune buying stakes in companies such as RJR Nabisco, Texaco, Phillips Petroleum, Lions Gate Entertainment Corp, Netflix Inc, Apple and eBay Inc and pushing their management to change their strategy, said that he is hedged against the possibility of a market meltdown. Icahn has been ringing alarm bells about mounting problems in high-yield bonds and has accused the Federal Reserve of being too slow to normalize monetary policy. If the Fed were to raise rates, that would tend to limit employment and wage growth, effectively reducing workers’ disposable income.

“In so much as we’re anxious about financial stability, a weaker economy and disinflationary pressures are going to make it worse”, said Mike Konczal, a financial policy expert at the left-leaning Roosevelt Institute. If a particular financial sector “goes sideways when interest rates are zero, it is not a reason to put millions of people out of work”, he said.

Despite his pessimistic outlook, Icahn recently raised his stake in battered natural gas company Cheniere Energy to 11.43 percent. The company spent $10B on buybacks in FQ3 (calendar Q2), after having hiked its buyback authorization to $140B in April.

Icahn said buying the stocks at a cheap price provides chances for long-term upside.

CEOs are taking advantage of the system – as in the prior cycle, which led us to the Great Recession.

But on its own, bringing home overseas earnings at lower rates isn’t likely to boost corporate investment or hiring. Even if they have to borrow the cash, you know you have the cash in Europe or somewhere.