Icahn: There’s a Housing Bubble and it Could be Disastrous
During an interview with Neil Cavuto on FOX Business Nework’s Cavuto: Coast to Coast, billionaire investor and businessman Carl Icahn said he believes there is another housing bubble now and it could be disastrous.
“You know, the subprime debt was only $1 trillion and look what it did. This time, you’ve got $2.2 trillion. It’s ridiculous... People are buying things they don’t understand,” he said.
Icahn is also concerned about emerging market debt as global growth concerns mount and he acknowledges the world often looks to the United States.
“And you say well, we’re not supposed to be the banker of last resort for the whole world… Right, but that’s not even the issue. The issue is, you’ve got a real problem at home and I don’t think anybody is facing it.”
And some of the latest housing data appears to be backing Icahn’s assertion.
On Tuesday, the S&P/Case-Shiller home price index indicated prices in 20 major U.S. metro areas rose less than forecast in July. On a seasonally adjusted basis, prices rose 0.6% compared to an earlier forecast of 0.8%. From the same period last year, prices were up 5% vs. expectations for a 5.1% increase.
And on Monday, pending home sales, which measures contracts that were signed to purchase existing homes, fell 1.4% in August compared to July, according to data from the National Association of Realtors.
The full interview with Icahn will run on FBN in its entirety on Tuesday at 12 p.m. ET.