Friday, October 9, 2009

Billionaire investor Carl Icahn: Double Dip Recession Likely, Bloodbath expected for Investors

Morning scare-mongering?
Icahn: Risk of Double Dip, Investor 'Bloodbath'
There is a real risk of a double-dip recession and the market is acting in a "schizophrenic" way, which could cause a "bloodbath" for investors, billionaire investor Carl Icahn told CNBC Friday.

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

"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," he said.

Icahn said he still sees investment opportunities in advertising, telecom, the Internet and bankruptcies. But making money out of bankruptcies should only be attempted by the experts, he said.

"We're quite involved in the secular change in the way advertising is going to be done. Obviously the cell-phone business is a growth business," he said.

Add another rich professional investor to the list of ones warning of a true catastrophe.

Yikes. (no cheer - just a big gulp)

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